Millennials behind surge in home buying intentions, RBC poll says

After a winter of depressed sales volumes in most markets, millennials are at the forefront of an overall increase in buying intentions across the country, according to RBC’s annual home ownership poll.

One-third of Canadians say they are very likely or somewhat likely to buy a home in the next two years, up seven points from last year and the highest level since 2010, according to the bank’s survey of 2,093 Canadians conducted by Ipsos and released Tuesday.

Millennials showed the strongest intention to buy, with 50 per cent of those aged between 18 and 34 saying they were very or somewhat likely to purchase within the next couple of years.

“Millennials have shown their confidence in both the economy and job market and are leading the charge in home purchase intentions across Canada,” said Nicole Wells, vice-president of home equity financing at RBC. “Young Canadians are getting creative in finding ways to get the keys to their home by getting help from their families and doing their homework well in advance of stepping foot on a property.”

The overall boost in homebuying intentions comes after a tough winter for many real estate markets, as Canadians continue to adjust to rising interest rates and the tougher mortgage qualification rules.

Of those surveyed, 61 per cent were very or somewhat worried about interest rate increases, up 10 per cent over last year. Over half of respondents said new lending guidelines by the Office of the Superintendent of Financial Institutions were affecting their purchasing decisions, with 25 per cent making larger down payments and 19 per cent delaying home purchases.

Across Canada, year-overyear home sales fell 16.9 per cent in February and were down in almost three-quarters of all local housing markets during the month, according to the Canadian Real Estate Association.

The slump was particularly heavy in Toronto with sales plummeting 35 per cent in February compared to the same period a year ago. Average home prices fell 12 per cent in February compared to a year ago, with single-family home sales plunging while condominiums posted strong gains, according to figures from the Toronto Real Estate Board.