Prospective Canadian home buyers delaying purchasing due to interest rates: poll
Posted Mar 7, 2024 9:58 am.
Whether you’re buying or selling your home, there’s no shortage of real estate activity right across the country.
However, the key lending rate, which is holding steady at five per cent, has many worried they’ll sink or swim in the spring housing market.
According to a Leger poll, 51 per cent of respondents put their home buying plans on hold for the last two years, and almost one in four said they’ll jump back in if the interest rate drops a full percentage point.
Waiting isn’t necessarily the best option, as Royal LePage finds that appointment bookings, property showings, and requests for mortgage pre-approval are all up sharply, nationwide.
Local expert Corinne Lyall tells CityNews that Calgary is attracting young families, mainly to the suburbs.
“They like to be where the communities are, where you have access to schools and community centres and churches, and all the things that we need to create a really nice community,” she explained.
However, she says the detached home market is also becoming inaccessible for people as prices are estimated to top $700,000, and even if the interest rates go down, price increases this spring will likely cut into any would-be savings.
Young, single Calgarians are more likely to flock downtown, by Lyall finds the core isn’t increasing at the rate as some of the other outlying communities.
When looking to buy, Lyall says people should remember that real estate is local.
“So the best thing to do is always make sure you’re not paying attention necessarily to what the average is across Calgary or Alberta, or even the country,” she said.
She adds that most price increases happen during the spring when there are more sales — and with tight inventory, prices will usually creep up, possibly in every price range and property type.
“It’s really about what’s happening with your house and your property in your market and what you have to compete with,” Lyall said.
In the end, it’s what buyers can afford that dictates the market, so prospective purchasers are advised to watch what competitors are charging for similar property types and get in touch with a realtor.
