Homeownership on the Rise in Canada

Increasing numbers of Canadians intend to become home owners by 2012, according to the 17th Annual RBC Homeownership study conducted by Ipsos Reid. This trend could mean increased demand for new homes and is spurring some would-be buyers to make their purchase now while supply and demand ratios remain favourable.

Ten percent of Canadians indicated that they are very likely to purchase a home in the next two years, up from seven percent in 2008. Younger Canadians are particularly keen with 15 percent of those in the 18 to 24 age group indicating that they are very likely to buy, a significant increase from the eight percent that expressed similar intentions in 2009.

The survey also revealed that Canadian home owners are very happy with their decision to purchase, as 91 percent believe that their home is a good investment.

"With the Canadian housing market showing continued vigour, it's not surprising that Canadians feel more confident in the long-term value of owning a home," says Robert Hogue, senior economist, RBC. "Exceptionally low mortgage rates and improved affordability have been key reasons for the resurgence in the housing market this past year."

Due in part to the recent rebound of the housing industry, six in ten Canadians believe that housing prices will increase this year, and 64 percent believe that mortgage rates will be higher over the next year.

"The expectation of higher mortgage rates on the horizon could be motivating buying intentions this year," acknowledges Marcia Moffat, RBC's head of home equity financing. "But it's important that homeowners - especially first time buyers - get solid advice about what they can afford, not only today, but down the road."