Friday, April 6, 2012

Majority of Canadians Don't Intend to Buy a House

73% report they are unlikely to buy in the next two years. Given that ultra low interest rates have already pulled far more households into ownership than in the past (see chart, and probably safe to assume that overall trend continued upward for 6 more years), it's unclear who the remaining potential buyers actually are. New grads? Second home buyers?

This bubble has to scrape the margin another round to sustain itself. This survey implies the remaining margin comprises wishful thinkers and speculators.

Home ownership rates Canada
Most Canadians plan no home buying in next 2 yrs-RBC
However, 46 percent of those polled expected mortgage rates
to stay at ultra-low levels next year, up sharply from 30
percent in 2011. The poll also found that nearly 60 percent felt
this year was a good time to buy a house, compared to 41 percent
that felt 2013 would be better. 
60%? Speaking of wishful thinkers...

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