A recent survey conducted by the Mustel Group for Sotheby’s International Realty Canada reveals that Canadians who live in large cities remain confident in real estate as an investment, despite high interest rates and an uncertain economy. The survey involved 2,000 Canadian adults between 18 and 77 years old living in Vancouver, Calgary, Toronto, and Montreal Census Metropolitan Areas (CMAs).
The report found that 60% of respondents believe that a home or residential real estate purchase will perform the same or better than their other financial investments over the next 10 years. Additionally, almost half of respondents (49%) believe that a home or residential real estate purchase will perform the same or better than their financial investments in the next 12 months, with 23% of respondents believing it will perform even better.
Despite a nearly 18% year-over-year decline in the average price of a Toronto home in February to just under $1.1 million, the report found that confidence in the real estate market remains high among Canadians. Don Kottick, President of Sotheby’s International Realty Canada, said, “Even though Canadians are now confronting the challenges of steep interest rate hikes, rising inflation, mounting economic uncertainty, and significant housing affordability concerns, the results of the Mustel Group and Sotheby’s International Realty Canada survey reveal that confidence in our real estate market remains high, and that demand for housing and housing mobility across every generation is more pressing than ever.”
The survey also found that the COVID-19 pandemic has had the least influence on Generation X and Baby Boomers’ likelihood to buy or sell. Meanwhile, 36% of Millennials are more likely to buy a home in the next five years, and 31% of Millennials are now less likely to purchase a home. The report also found that 40% of Generation Z adults are now more likely to buy a home in the next five years.
In the Greater Toronto Area, consumer confidence remains upbeat, with a significant percentage of residents more primed to engage in a real estate transaction than they were before the pandemic. While sales activity and price escalation have calmed across Toronto, consumer demand for real estate has remained remarkably resilient.
The survey was conducted online from January 3 to January 10, 2023, and while a margin of error cannot be assigned to an online survey, the margin of error on a random probability sample of a similar size would be plus or minus 2.2 percentage points, 19 times out of 20, and ranges from plus or minus 3.8 to 4.9 points for 400-680 respondents.
