Canadians bitten by home-buying bug

With Canada's economic recovery appearing to be in full swing, a study released Wednesday shows more people becoming interested in buying a home.

A survey by research group TNS Canadian Facts shows the proportion of people intending to buy a house or condominium was 14 per cent across the country in March, compared with 11 per cent in September.

But much of the previously measured demand remained "unsatisfied," as nearly two-thirds of those who were planning to purchase in September still had not bought by March.

TNS linked the increased willingness of people to enter into home ownership with the economy's improving prospects, noting that its other research shows consumer confidence has recovered to levels around what was seen before the economic crisis hit in the fall of 2008.

Low interest rates are also a factor, TNS said. The survey showed 12 per cent of renters in the country intending to buy homes to take advantage of low mortgage rates, while 22 per cent of existing mortgage holders are looking to renegotiate their terms.

TNS noted that the survey was taken March 18 to 25, before new federal regulations took effect that require higher down payments to qualify for mortgages, and before Canada's major banks began a series of hikes to their mortgage rates.

The research firm predicted that the new federal rules would have a "mild dampening effect" on housing demand.

A separate survey released Tuesday by the Bank of Montreal found that B.C. residents are more likely than other Canadians to have bought a home because they were convinced prices will continue rising.

In B.C., 18 per cent bought a house because they believed its value would increase, compared with seven per cent in Atlantic Canada, six per cent in Quebec and five per cent in Ontario.

At 22 per cent, the proportion of B.C. homebuyers who consider resale potential was almost double the 11 to 15 per cent for other provinces, BMO said.

In its monthly report, the Fraser Valley Real Estate Board reported close to record listings for April.

The board's 10,635 active listings last month were second only to the 11,891 listings recorded for April 1995.

The board saw 1,793 units change hands in April, up 38.7 per cent from a year earlier.

The Real Estate Board of Greater Vancouver said that its benchmark price for all homes rose 18.9 per cent to $593,419 in April from $499,021 a year earlier.

(Source: Vancouver Province)