Hard-Pressed But Happy: Canadians Willing to Sacrifice Financial Security to Achieve Homeownership Dreams

93% of homebuyers said competitive markets and rising interest rates influenced decisions, according to Zolo survey

TORONTO, Sept. 26, 2023 /CNW/ - Are historically high mortgage costs and the highest inflation rate in over 30 years enough to dampen Canadians' love of homeownership? A new report from Zolo, Canada's largest independent real estate marketplace, reveals: No! Buyers are willing to trade financial strain for the security of a place to call their own.

2023 Homebuyer Sentiment Survey: Rising Prices, Inflation, and FOMO (CNW Group/Zolo)

Zolo surveyed 800 Canadians who bought homes in the past four years to understand what motivated their purchase, how they're fairing financially now, and whether they regret buying a home. Some key results in the 2023 Homebuyer Sentiment Survey include:

• 93% of homebuyers stated that competitive property markets and rising interest rates influenced their decision to buy a home
• 92% said that inflation at least somewhat affects their ability to afford their home
• 30% reported that their finances were tight, but they were managing with little room for extras
• 45% stated that they would still be content with their properties if there were another interest rate increase before the end of this year.

Canadians Rush to Buy Ahead of Rising Interest Rates and Competitive Markets

Home prices have risen since the pandemic's beginning, spurring homebuyers to stretch themselves financially to secure a home. According to Zolo's survey, 93% of respondents claimed that increasing interest rates and competitive markets influenced their decision to buy a home. Additionally, 43% stated they wanted to purchase a property before prices increased further, making houses even more costly. 

Despite Strained Finances, Canadians Still Happy in Their Homes

When asked how they manage financially, 30% of said their finances were tight, and 10% said they were struggling and unable to meet basic needs. That said, with inflation rising to 4% in September and another Bank of Canada interest rate increase on the horizon, Canadian homebuyers don't regret their purchase. 45% of respondents said they would still be happy in their home, even if interest rates increase again this year.

About Zolo

Zolo is one of Canada's most popular national real estate marketplaces. Every month, more than 10 million home shoppers use Zolo to enhance their real estate experience by buying, selling, renting, financing, and learning about real estate.

SOURCE Zolo

Press Contact: Jordann Kaye, Content Marketing Manager and Spokesperson, [email protected], Ph: 902-401-0610