With tough real estate market conditions continuing into
summer, new research from Zillow and Ipsos shows why Canadians
are—and aren't—moving
- The top barrier to owning a home for Canadians continues to be
coming up with a down payment (64%); Qualifying for a mortgage is
also a top barrier
- Two-thirds of Canadians are concerned that rising home prices
will prevent them from being able to afford the home they want
- Nearly three-in-ten (29%) Canadians indicate that low housing
inventory in their area has impacted their decision to buy, sell,
or move
VANCOUVER, B.C., June 24, 2021 /CNW/ -- It's no secret that
Canada's hot housing market is
causing anxiety with home sales and prices that are cooling off
slightly from this spring, but remain historically
high1. A new survey from Zillow and Ipsos reveals that
affordability is a top concern, but Canadians are dreaming of a new
home and using online tools to help them on their way.
Rising prices are challenging affordability
Rising home prices have two-thirds of Canadians worried they
won't be able to afford the home they want in the future, and are
keeping many from breaking into the market today. Over half of
renters surveyed said not being able to afford a home is the main
reason they are renting instead of buying, and coming up with a
down payment for a mortgage is a major barrier for renters and
potential buyers alike.
Financial barriers to breaking into the real estate market may
be especially prevalent after a tumultuous year of pandemic-related
job, economic and financial losses. As people choose to stay in
their homes due to the pandemic, the effects on supply are rippling
out: one in four sellers have not listed recently for fear they
won't be able to find a new home, and 29% of Canadians overall
indicate that low housing inventory in their area has impacted
their decision to buy, sell or move. This sentiment is particularly
pronounced for those under 35 years old—who are likely to be
first-time buyers and do not have the proceeds from the sale of an
existing home to put toward a down payment, making affordability an
even greater challenge—and for those living in BC and Ontario, provinces home to the country's two
most expensive cities, Vancouver
and Toronto.
Despite challenges, many buyers still dream of moving
Fewer choices and higher prices haven't stopped home shoppers from
dreaming about their next home, with many turning to online tools
early in their journey. Three-quarters of buyers looked at
properties for sale online as the first step of their home buying
process, and 85% used an online app or website as part of their
home search, up from 76% in 2018.
Nearly three in four home shoppers and sellers who use online
resources see virtual tours as an important tool. Virtual tours
like Zillow 3D Home® help home shoppers get a sense of a home
when it's unsafe to visit in person, or in the early stages of a
search process to narrow down homes with the right features or
floor plan for that buyer. Shoppers also want a full picture of a
home, noting detailed property information and high-resolution
listing photos as the most valuable features in listings.
Why make a move? Affordability, more space
While market conditions and pandemic-related considerations might
be holding some potential movers back, others are adjusting to
changes that have many re-thinking where, and how, we live. For
those who have moved in the last year, 43% said they wanted a more
affordable home and 38% wanted a larger home. Other top reasons for
moving include living closer to family and friends (36%) and
wanting more outdoor space (34%). Buying a home remains
challenging, but opportunities are there on the other side for
those that can overcome the barriers and start a new chapter.
Zillow makes real estate simpler. With comprehensive and updated
listing information including rentals and new construction listings
in all provinces and territories except Quebec, you'll find the information you need
at your fingertips. To view homes for sale in your area, visit
Zillow.ca or download the Zillow app.
Methodology
Data came from a survey of 2,624 Canadians
conducted by Ipsos on Zillow's behalf. Fielded between April 9 and April 27, 2021, the survey
included boost samples of additional participants to obtain
sufficient sample sizes in Vancouver and Toronto, as well as for home buyers and
sellers who transacted in the last three years. The method of
interview was an online, device-agnostic survey using Ipsos iSay
panel and partner panels, conducted in English and French.
About Zillow Group:
Zillow Group, Inc. (NASDAQ: Z and
ZG) is reimagining real estate to make it easier to unlock life's
next chapter.
As the most-visited real estate website in the United States, Zillow® and its affiliates
offer customers an on-demand experience for selling, buying,
renting or financing with transparency and nearly seamless
end-to-end service. Zillow Offers® buys and sells homes directly in
dozens of markets across the country, allowing sellers control over
their timeline. Zillow Home Loans™, our affiliate lender, provides
our customers with an easy option to get pre-approved and secure
financing for their next home purchase. Zillow recently launched
Zillow Homes, Inc., a licensed brokerage entity, to streamline
Zillow Offers transactions.
Zillow Group's brands, affiliates and subsidiaries include
Zillow®; Zillow Offers®; Zillow Premier Agent®; Zillow Home Loans™;
Zillow Closing Services™; Zillow Homes, Inc.; Trulia®; Out East®;
StreetEasy® and HotPads®. Zillow Home Loans, LLC is an Equal
Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
About Ipsos:
Ipsos is the third largest market
research company in the world, present in 90 markets and employing
more than 16,000 people.
Our passionately curious research professionals, analysts and
scientists have built unique multi-specialist capabilities that
provide true understanding and powerful insights into the actions,
opinions and motivations of citizens, consumers, patients,
customers or employees. Our 75 solutions are based on primary data
from our surveys, social media monitoring, and qualitative or
observational techniques.
Our tagline "Game Changers" sums up our ambition to help our
5,000 customers move confidently through a rapidly changing
world.
Founded in France in 1975,
Ipsos has been listed on the Euronext Paris since July 1, 1999. The company is part of the SBF 120
and Mid-60 indices and is eligible for the Deferred Settlement
Service (SRD).
ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP
www.ipsos.com
1 According to May 2021 market data from the Canadian Real
Estate Association.
(ZFIN)
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content:http://www.prnewswire.com/news-releases/affordability-and-more-space-are-strong-draws-for-canadian-home-shoppers-but-rising-prices-and-low-inventories-remain-challenging-301319628.html
SOURCE Zillow