The Province

Most B.C. residents nervous about economy, housing prices

- SAM COOPER

B.C. residents strongly believe housing prices will drop and are more nervous than other Canadians about the economy, according to a new RBC survey.

RBC’s annual Home Ownership poll found that given current home prices and economic conditions, 55 per cent of B.C. residents said they would rather wait at least a year to buy a home, compared with a national average of 51 per cent.

There is a strong belief among B.C. residents that housing prices will drop, with 59 per cent in this province predicting a slump, compared with 55 per cent across Canada. As well, 53 per cent of B.C. residents are worried about the economy, compared with 50 per cent nationally.

The most striking difference between B.C. and the rest of Canada was in perception of affordabil­ity. In B.C. 45 per cent say unaffordab­le prices are a reason to put home purchases on hold, compared with 35 per cent across Canada.

“B.C.’s housing market has given some prospectiv­e homebuyers reason to pause,” said Inde Sumal of RBC.

However, RBC’s mortgage specialist­s see a silver lining in survey results. The survey showed intent to purchase a home within two years was up among residents in B.C., at 27 per cent, compared with 22 per cent in the 2014 survey.

Across Canada’s housing market — overvalued by up to 30 per cent, according to Canada’s central bank — sentiment is slowly shifting in favour of buyers, the survey shows.

Alberta leads that trend. After a dramatic oil price crash that shook Alberta’s economy and political landscape this year, 43 per cent of Alberta residents believe they are in a buyers’ market, compared with 22 per cent in early 2014. According to the survey, 38 per cent of B.C. residents believe the market is balanced, while about one in three say it’s a sellers’ market and 30 per cent say it’s a buyers’ market. The national figures for each category are 37, 28 and 36 per cent.

The poll was conducted by Ipsos Reid from Feb. 3 to Feb. 14 of this year, with a sample of 2,000, and is considered accurate within ± 2 percentage points.

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