TORONTO, ONTARIO — (Marketwired) — 05/22/13 — Despite cooling conditions in Canada-s housing market, the BMO Housing Confidence Report released today shows nearly half of Canadian homeowners (48 per cent) intend to buy a property in the next five years – mostly unchanged from fall 2012 – signalling a high level of confidence in Canada-s housing market is continuing into 2013.
However, regional data reflect a different story. In major city centres, intent to buy in Vancouver is on the rise, while Calgary has dropped by 13 points. Further east, buying intentions in the Greater Toronto Area (GTA) and Montreal have stayed steady over the same period. Provincially, Atlantic Canada has seen the largest increase in buying intentions, jumping by 15 points since the fall.
The report also reveals that perceptions of mortgage affordability have improved since the fall, with a 10 point drop in the proportion of mortgage holders making spending or saving cutbacks to afford their mortgage payments.
“The relative strength of the Canadian housing market continues to bolster homeowners confidence, while improving affordability across all regions reflects that Canadians are making responsible choices when it comes to financing a home,” said Martin Nel, Vice President of Lending and Investments, BMO Bank of Montreal.
Mr. Nel added that for Canadians looking to buy a home – particularly first-time buyers – choosing a fixed rate mortgage and a lower amortization period can help to increase financial stability.
“The improvement in affordability reflects continued income growth nationwide and softer home prices in a few regions since the summer,” said Sal Guatieri, Senior Economist, BMO Capital Markets. “That said, affordability remains an issue in the detached markets of Vancouver and Toronto, pushing more buyers into the condo market.”
BMO-s second semi-annual report, conducted by Pollara, tracks confidence in Canada-s housing market among Canadian homeowners by measuring intentions to buy or sell, price expectations and overall mortgage affordability. The report revealed:
Homeownership Intentions
Price Sensitivity Eases While Expectations Stay Mostly Flat
“In Vancouver, buyers seem eager to take advantage of the modest decline in home prices over the past year, while, in Calgary, strong price gains appear to have put some potential buyers on the fence,” noted Mr. Guatieri.
Mortgage Affordability Improving
The BMO Housing Confidence Report was conducted by Pollara. Survey results cited in this report are from online interviews with a random sample of 1,008 Canadian homeowners, 18 years of age and over, conducted between February 21 and 27, 2013. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20. Data has been weighted by region, based on the most recent Census figures, so that it is representative of Canadian homeowners.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.
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