Resale fears abound across demographics - report

According to the results of the latest poll conducted by CIBC, nearly two-thirds (62 per cent) of Canadian home owners are hesitant to sell their properties because of the prevailing climate of elevated home prices that would make it more difficult for them to get their next houses.

This fear cuts across the demographic spectrum, despite the survey finding that around two in five Canadian home owners (41 per cent) are contemplating on making generous profits by selling their homes in current market conditions.

Among baby boomers (aged 55 and above), 67 per cent plan to sell their current homes, and 63 per cent plan to downsize to smaller domiciles, condo units, or retirement homes.

“Your home is where your heart is, but it's also likely your biggest financial asset, so there is a lot to consider as you enter or near retirement that can affect your decision to sell or not,” CIBC Imperial Service vice president David Nicholson said. “It’s important to determine what income you'll need in retirement to live the life you want and prepare for the unexpected.”

The same poll also found that as much as 81 per cent of millennials (aged 18 to 34) who own homes right now are planning to sell. 63 per cent said that mortgage and housing costs are financially burdensome, while 57 per cent expressed fears that rising interest rates will make it harder for them to meet their mortgage payments.

Overall, 54 per cent of the survey respondents indicated that they believe that home prices will grow further, with 40 per cent expecting that prices will decline within the next 5 years.

Meanwhile, 48 per cent of those planning to sell feared that prices might drop due to government interventions via taxes and policy changes, while 28 per cent stated that renting remains the “better option” amid the feverish market conditions.
 

Related stories:
Is now the time to sell?
CREA updates resale activity predictions covering 2017-18

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

COMMENTS

  • by Ronnie Kartman 2017-04-12 9:32:06 AM

    If you buy into the notion that this unrealistic, constantly rise in prices will continue much longer...then you should keep your property for now and not sell. SHADES OF 1989!! Want to talk about a non-standard economic indicator? Ask yourselves this question: If the recent rise in prices (10%-30% per year over the last few years is not to speculation of Foreign investors (especially from when the $CDN had fallen to below $.67 cents U.S....And for what it is worth....I believe that that figure is closer to 30-40% than the BS (below 5%) being touted by CMHC, etc.) and domestic speculators..., and if the prices are running concurrent with an equal rise in the general economy (Jobs, wages, exports, etc...and that the Toronto economy is so generally booming in tandem with those increased prices.....
    ...Then how do you explain why the AVERAGE PRICE OF HOTEL ROOMS throughout the GTA (with very few exceptions within downtown core) have virtually remained unchanged from 15 years ago??? Toronto will always remain the "Flagship City" for our North American Business Model...but many homeowners, mortgage brokers and realtors have become players in an ever-increasing (and dangerous) game of "Musical Chairs." Be afraid...BE VERY AFRAID.

  • by Barclay Bolton 2017-04-14 3:04:10 AM

    Thank you for sharing your thoughts with us this is very helpful for those who are worrying about selling and buying homes.We also provide some services of selling and buying homes in Florida.If you are interested then visit us on:- http://www.fastsaleflorida.com/sell-your-house-fast/

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Do you invest in commercial properties?