Not even intensified demand is enough to convince most Canadian homeowners to sell
The majority of homeowners currently have no plans to sell amid a high-demand housing market and a record-low-rate environment, according to a new poll by the Canadian Imperial Bank of Commerce.
As much as 75% of survey respondents said that they do not intend to change their current homeownership situation in the next two years. Around 63% said that prevailing low interest rates have not convinced them to sell and upgrade to bigger homes.
“As a potential homebuyer, these results suggest that supply won’t be improving in the near term,” said Carissa Lucreziano, vice president at CIBC Financial and Investment Advice.
Instead, Canadians’ accumulated savings are more likely to be used for renovations, the CIBC survey found. Approximately 34% of homeowners said that they have renovated their homes over the past year, with 54% undertaking basic home maintenance, 45% engaging in landscaping, 32% in bathroom renovations, 26% in decorating, and 24% in kitchen renovations.
Another 31% said that they are planning to make upgrades in the next 12 months.
“It’s a positive sign that many homeowners are using cash versus debt to fund renovations – we’re seeing prudent financial behaviour from this group,” Lucreziano said.