Real Estate Market Continues Strengthening

Canadians' belief in the strength of the real estate market held steady in December, despite concerns around the overall economy, says the ‘RBC Home Buying Sentiment Poll.’ High home values also continued to drive potential home buyers outside of major metropolitan areas in search of affordability and larger properties. The poll found that only 18 per cent of Canadians polled stated the overall economy is strong, yet 45 per cent believed in the strength of the housing market. Even though the vast majority of respondents were concerned about the financial impacts of COVID-19 (78 per cent), less than half of respondents were concerned about the impact the second wave of the pandemic will have on the real estate market (43 per cent). Moreover, only 19 per cent believe the pandemic has weakened competition within the real estate market and made it easier to buy a home. When asked, Canadians said they were most interested in purchasing property in the suburbs or a commuter city (38 per cent), followed by rural areas (26 per cent). Only 14 per cent would look to purchase a home in a major metropolitan area. More than half of respondents also said that home values in their area were unaffordable. However, with an average Canada-wide budget of $445,237, which falls below the average nationwide home price value, almost half of respondents stated that if they wanted to buy or own a larger home, they would likely have to move out of the city they're currently living in.