High prices worry sellers, millennials fear mortgage costs

While homebuyers may be unwilling or unable to afford high costs of homes in some Canadian markets, a new poll shows that sellers are also being dissuaded.

Almost two thirds of would-be home sellers told CIBC that they are put off by what they would need to pay for their new home, making staying put a more viable option.

Four in ten with plans to sell are looking to cash-in and take the profit. Most respondents (54 per cent) believe prices will keep rising with 40 per cent predicting a fall.

Almost half believe that government policies will reduce home prices and 28 per cent said that renting was a better option due to current house prices.

Nearly two thirds of boomers are planning to downsize and millennials may not be keen to take up the available homes; 23 per cent say they will never own a home while 29 per cent are not sure it’s their future.

Among the younger Canadians who already own a home (39 per cent) 63 per cent say they are made cash poor by high mortgage and housing costs. 57 per cent are concerned that interest rate rises will make it harder for them to meet mortgage payments.

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