As there are no hopes of the interest rates taking a different turn anytime soon, a huge number of Canadians do not think this is the right time to purchase a house.
A study that was done by Manulife showed that only 25 percent of those having a rental plan at the moment intend on owning their own homes in the next year, even though the majority of them are saying that’s not their main target.
The Senior Investment Strategist at Manulife Investments (Kevin Headland) said: “Canadians say that owning a house is a top priority for them, yet they’re not willing to invest in housing right now. Perhaps investors are feeling the timing for this investment isn’t right. Many real estate markets are red-hot right now, which makes it difficult for Canadians to purchase a home, even if it is a priority for them. There are concerns that this housing bubble might just burst, leaving them with a bad investment.”
71 percent of respondents are saying low mortgages is the reason why it’s advisable to buy a house now, while 45 percent said it will help secure investment. For those who think it’s not a good time to purchase a house, 72 percent felt the houses were too expensive and not within their affordability, while 32 percent said the real estate market is unstable, and the other 20 percent were worried about their finances and incomes.
Most residents in British Columbia havve negative views on buying a house at this point in time, while those in Atlantic Canada were very optimistic and see it as a good time to purchase a house.