BUY or not BUY a home in the next 5 years ???
BMO survey in regards to homeownership intentions over next 5 Years concludes the following:
- Buying Intentions: softens in the GTA 51 % of homeowners plan to buy in the next 5 years, 8 points down from 2013 .
- Price expectations: Homeowners' expectations of price gains reasonable as appreciation begins to slow. In Ontario homeowners believe property values to grow on average by 2.9% in 2014.
- Mortgage affordability: Number of mortgage holders dipping into savings to afford payments continues to decrease
Why people believe buying intention will drop in GTA ?
- People expect interest rates to rise
- They feel GTA market is overvalued and they expect a price correction
These 2 statements are a bit contradictory with the good news which just came up on April 16th. The Bank of Canada has decided to keep the overnight rate at 1% and also is less worried about a severe correction in the housing market . The bank also declared it's leaving the door open for rate cuts . That being said, mortgages will be still affordable.
Guess who are going to be the BUYERS ?
Mostly younger Canadians planning on buying within the next 5 years
- 75% of the people between the ages 18-29
- 67% of people between the ages of 30-39
Homeownership Intentions: Young Canadians Most Likely to Buy. Investment Properties will be More Attractive in 2014.
What is your opinion in regards to BUYING ?