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