New poll also shows greater buying and selling intentions among Canadian adults
Confidence in the prospects of Canadian real estate is now apparent across all demographics, with 49% of urban Canadians anticipating real estate performance to match and even surpass financial investments within 12 months, according to a new survey by Sotheby’s International Realty Canada.
Canadians are even more confident in the projected performance of real estate over the following decade, with 60% of urban Canadians between the ages of 18 and 77 believing that a residential purchase will perform the same or better than their other financial investments over the next 10 years.
“Across all markets, Baby Boomers are the most likely generation to believe real estate will outperform their financial investments in one year, as well as within 10 years, with 28% and 44% doing so, respectively,” Sotheby’s reported.
More than one-third (35%) of adult Canadians residing in urban areas said that they are now more likely to buy a home in the next five years compared to their intentions right before the pandemic. A similar proportion said that they are more likely to sell a home within the next half-decade compared to their intentions in January 2020.
However, “urban millennials are less likely than Generation X and Baby Boomers to sell their primary residence in the next five years compared to pre-pandemic, with 32% reporting a reduced propensity to sell, compared to 21% and 23% amongst Generation X and Baby Boomers respectively,” Sotheby’s said.
These results reflect a sea change in perceptions towards ownership, a shift that has happened over the past three years.
“One of the most transformative and enduring social and economic outcomes of the pandemic is that Canadians now place a heightened importance on primary homeownership, not only as an investment in their lifestyle and personal security, but as an investment in their financial future,” said Don Kottick, president and CEO of Sotheby’s International Realty Canada.
“Even though Canadians are now confronting the challenges of steep interest rate hikes, rising inflation, mounting economic uncertainty, and significant housing affordability concerns, the results … reveal that confidence in our real estate market remains high, and that demand for housing and housing mobility across every generation is more pressing than ever.”