Residential Market Commentary - The top motivators for home buyers
Why do people want to buy a home? Most of us figure we know the answer. But Canada Mortgage and Housing Corporation decided it would try to find out for sure.
The housing agency did an online survey late last year. It culled out a modest 2507 responses which it broke into three categories: first time buyers; current owners; and previous owners (those who used to own, but do not right now). All of the chosen respondents are looking to buy a home within the next two years. First time buyers made up about 2-thirds of the survey sample.
So, what is the top motivator for people who plan to buy a home?
Survey says! They want to stop renting. 65% of first time buyers and 60% of previous owners cite this as one of their top-3 reasons for wanting to buy.
Other top motivators include: concern over interest rate increases and taking advantage of an investment opportunity. Overall, 80% of respondents feel home ownership is a good long term investment.
There’s an interesting indicator that suggests that our aging population is influencing the market: 21% of current owners indicated they want to get another home because they want improved accessibility – that is, fewer physical obstacles and barriers.
There is also some encouraging news for mortgage brokers. The survey suggests about 70% of current and previous owners, and 80% of first timers, plan to consult a broker before they buy.