- 56% of Quebecers say location is more important than size as we
return to normal
- 19% of mortgage holders in Quebec haven't considered what they could
afford if interest rates rise
- Average home buying budget for Quebecers rises by more than
$50,000 year-over-year
TORONTO, March 21, 2022 /CNW/ - Home-buying attitudes are
shifting as Quebecers get into the post-pandemic mindset. According
to the annual RBC Home Ownership Poll, purchase intent among
Quebecers is now back to what it was in January 2020 with one-in-five (20%) respondents
saying they are likely to purchase a home in the next two years,
compared to 36% in 2021 and 19% in 2020.
The research also found the need for more space may be taking a
back seat with more than half of respondents in Quebec (56%) saying location is more important
than buying a larger home as we return to normal. Only 21% say they
are willing to be further away from amenities to afford a larger
home. For Quebecers who rent, more than a quarter (26%) feel less
pressure now to buy than during the peak of the pandemic.
"While there is still a significant amount of activity in the
market, our research indicates that the rush of people looking to
purchase a home over the last two years has subsided and we're now
starting to see a move back to pre-pandemic levels," says
Pascal Berger, Mortgage Specialist,
RBC. "Between rising costs and the competitiveness of the market,
Quebecers may now be taking a step back and setting aside more time
to plan and save before making the jump into home ownership."
Stress, spending and rising prices
Of those who say
that housing prices have impacted major milestones in their life
almost two-in-five (38%, lowest regionally) respondents in
Quebec say thinking about buying
or saving for a home as prices rise is causing stress in their
relationship, while 45% are stressed knowing they may need to buy a
home farther away from family and friends. Almost a quarter (23%)
also say that due to increasing prices they have/will need to live
with their parents longer in order to save enough to buy a
home.
The research also found that more than a third (36%) of
Quebecers plan to continue to spend less post-pandemic so they can
put the savings towards buying a home, while 22% (lowest
regionally) believe they will struggle to cover the cost of owning
a home as they return to pre-pandemic spending habits.
"Buying a home is the largest purchase most people will ever
make, so it's natural that it comes with a certain level of stress,
especially in today's market," says Berger. "While home buyers
can't control market factors, taking the time to create a plan and
understand where they are financially can help them feel more in
control of the home buying process."
On the rise: Interest rates, inflation and home buying
budgets
While half (50%, lowest regionally) of respondents
in Quebec are concerned about
interest rates rising in the coming year, a similar amount (51%,
highest regionally) say they and/or their family are
well-positioned to weather a potential increase. One-in-five (19%)
Quebec respondents with a mortgage
haven't yet considered what they could afford if rates were to
rise.
When it comes to rising inflation, 44% of respondents in
Quebec are worried about the
impact it will have on their ability to purchase a home, while 48%
(lowest regionally) are concerned it will affect their ability to
cover the costs of owning a home.
The research also found there has been a big increase in how
much Quebecers plan to budget and save for a home. On average,
respondents who have a budget in mind if they were to purchase a
new home, say their budget would be $352,578, compared to $298,971 in 2021. At the same time, those who
already have some savings earmarked for a home purchase say they
now have $125,152 on average set
aside (up from $91,803 in 2021).
"With the rising costs Quebecers are facing, having a clear
picture of your finances is a must. An expert can give you advice
on planning for rising interest rates, increases in the cost of
living and changes to your personal finances or home buying
budget," adds Berger.
Berger adds that for those thinking about purchasing a home,
understanding the process and knowing what you can afford are
important first steps. Whether in person or virtually, RBC mortgage
specialists can help give prospective home buyers the certainty and
confidence they need every step of the way.
- With the help of an RBC Mortgage Specialist or the RBC True
House Affordability tool, home buyers can see how much they
could afford and learn about different mortgage options.
- Ready to sell? The RBC Home Value Estimator helps current
homeowners see what their home may be worth today.
- Home buyers can also access helpful articles and resources by
visiting discover.rbcroyalbank.com/homes/, including the Mortgage
101 and Home Buying 101 Series.
National and Regional Data Tables
Question
|
Quebec
|
National
|
B.C.
|
Alberta
|
SK/MB
|
Ontario
|
Atlantic
Canada
|
Strongly
Agree/Agree Responses
|
I am likely to
purchase a home in the next two years.
|
20%
|
23%
|
23%
|
28%
|
20%
|
25%
|
19%
|
As we return to
normal, location is more important than buying a larger
home.
|
56%
|
59%
|
61%
|
62%
|
53%
|
61%
|
52%
|
I would rather buy a
larger home than be closer to amenities.
|
21%
|
25%
|
25%
|
22%
|
30%
|
27%
|
26%
|
Renters: I
feel less pressure now to buy than during the peak of the
pandemic.
|
26%
|
27%
|
26%
|
28%
|
26%
|
26%
|
41%
|
Rising house
prices have impacted major life milestones: Thinking about
buying or saving for a home as prices continue to rise is causing
stress in my relationship.
|
38%
|
47%
|
49%
|
59%
|
44%
|
50%
|
40%
|
Rising house
prices have impacted major life milestones: Thinking about
having to buy a home farther away from friends and family due to
rising house prices is causing me stress.
|
45%
|
54%
|
59%
|
62%
|
47%
|
57%
|
41%
|
Rising house
prices have impacted major life milestones: I have/will need to
live with my parents longer in order to save enough to buy a
home.
|
23%
|
30%
|
30%
|
39%
|
31%
|
34%
|
16%
|
I am feeling
financially overwhelmed.
|
26%
|
40%
|
42%
|
45%
|
51%
|
43%
|
45%
|
I am worried my
financial position may deteriorate over the next year.
|
32%
|
42%
|
45%
|
50%
|
43%
|
44%
|
42%
|
I am providing
financial support (or additional financial support) to my family
because of the pandemic.
|
16%
|
21%
|
19%
|
25%
|
18%
|
23%
|
23%
|
I plan to continue to
spend less after the pandemic so I can put the savings towards
buying a home.
|
36%
|
37%
|
37%
|
38%
|
36%
|
39%
|
34%
|
I believe I will
struggle to cover the cost of owning a home as we return to
pre-pandemic spending.
|
22%
|
33%
|
40%
|
36%
|
33%
|
38%
|
33%
|
I am concerned about
interest rates rising in the coming year.
|
50%
|
60%
|
62%
|
69%
|
65%
|
63%
|
60%
|
I or my family is
well-positioned to weather a potential increase in interest
rates.
|
51%
|
47%
|
45%
|
47%
|
44%
|
48%
|
36%
|
Mortgage
holder: I haven't yet considered what I could afford if
mortgage rates increase.
|
19%
|
22%
|
22%
|
24%
|
15%
|
24%
|
26%
|
I am concerned about
the impact rising inflation will have on my ability to purchase a
home.
|
44%
|
48%
|
53%
|
50%
|
48%
|
50%
|
43%
|
I am concerned about
the impact rising inflation will affect my ability to cover the
costs of owning a home.
|
48%
|
54%
|
57%
|
58%
|
54%
|
57%
|
54%
|
Excluding $0
responses
|
Have a
budget: Average home buying budget if they were to
purchase
|
$352,578
|
$506,646
|
$692,741
|
$423,001
|
$325,399
|
$653,100
|
$253,672
|
Currently have
savings for a home: Average amount saved for buying a
home
|
$125,152
|
$196,286
|
$288,451
|
$201,729
|
$172,384
|
$222,516
|
$66,425
|
About The Survey
An online survey of 2,753 Canadians
was completed between January 13 to January
29, 2022 using Leger's online panel, LEO. Leger's online
panel has approximately 400,000 members nationally and has a
retention rate of 90%. A probability sample of the same size would
yield a margin of error of ±1.9 per cent, 19 times out of 20.
Poll aggregator 338Canada.com gave Leger the highest rating
among all polling firms in Canada
for the accuracy of its studies. See
https://338canada.com/pollster-ratings.htm.
About RBC
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SOURCE RBC Royal Bank