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.
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.
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).
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.
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. ■