While it’s no secret that the housing market in B.C. is a hot topic, many still dreamed of owning a home here. However, it seems now that dream has changed.
According to the RBC Spring Housing Poll, 41% non-homeowners under 40 in B.C.,say they will never own a home.
This is despite the fact that 60% of British Columbians (any age) said they are trying to save towards a new home. When asked how likely the were to purchase a home in the next two years, this dropped to 24%. On average the amount they are able to save per month, towards a home, is $500/month.
“The road to home ownership isn’t always easy,” says said Amit Sahasrabudhe, Vice-President, Home Equity Financing, Products and Acquisitions, RBC. “Potential homebuyers need to look at their personal financial situation as well as the current economic environment as both can have a big impact on the ability to purchase a home.”
What Are The Struggles To Home Buying in BC?
While saving for a down payment may be one of the biggest struggles, there are many other factors that were found in this survey.
Things like ‘interest rates’ and ‘how homes will become less affordable later’ appeared as driving forces for some Canadians who are considering to buy sooner. However, according to the report, the key drivers among those waiting to buy a home are:
- uncertainty about the economy (56%, up from 40%)
- a belief that prices may come down (41%)
- affordability issues (35%)
- job anxiety (30%).
“Historically low mortgage rates and continued economic uncertainty have created a lot of unknowns for home buyers,” says Sahasrabudhe.
Given we are in year 2 of the pandemic, the reality for many has become about learning how much flexibility exists in their budget and finances, and what we truly can afford.
Sahasrabudhe recommends to always put the finances through a “stress test” to see if they can still afford the home if interest rates increase or if they had an unexpected expense or income loss.
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