The Canadian housing market is likely to see a "historic number" of resale homes in the next few years
The majority of homeowners who are intending to sell their primary residences have said that they plan to repair or renovate their properties, according to a new study by NerdWallet Canada.
“Fears that high mortgage rates and inflation could force a large number of homeowners to sell their properties may prove to be justified,” NerdWallet said, noting that as many as 23% of Canadian homeowners said that they will be selling their primary residences within the next three years.
“If all follow through, it would result in a historic number of properties hitting the market,” NerdWallet said.
The study found that 73% will be updating the interiors of their homes, while 45% will be making repairs or renovations to their exteriors.
With many Canadians now working from home, renovation projects are on the upswing as homeowners retrofit their properties to accommodate the “new normal.” https://t.co/fmb4nWZh8b— Canadian Mortgage Professional Magazine (@CMPmagazine) September 16, 2020
However, the report also stressed that several factors may prevent homeowners from selling their primary residences within the next three years – namely, the stress of moving (22%) and the prospect of buying a new home amid limited supply (16%), both of which aren’t likely to get resolved any time soon.
“Anything that prevents homeowners from listing their properties is going to put more pressure on buyers,” said Shannon Terrell, personal finance expert at NerdWallet Canada.
Additionally, Canadian homeowners don’t appear to be in a rush to sell, with only 6% saying that they plan to sell their primary residences within the next 12 months. A mere 4% said that they intend to sell within 13-18 months, while 5% said that they plan to sell in 19-24 months.
Two out of five (41%) homeowners said that they will be selling only more than five years from now.