Home-buying intentions go back to pre-pandemic levels: RBC Poll

• 56% of Quebecers say location is more important than size as we return to normal
• 19% of mortgage holders in Quebec haven't considered what they could afford if interest rates rise
• Average home buying budget for Quebecers rises by more than $50,000 year-over-year

TORONTO, March 21, 2022 /CNW/ - Home-buying attitudes are shifting as Quebecers get into the post-pandemic mindset. According to the annual RBC Home Ownership Poll, purchase intent among Quebecers is now back to what it was in January 2020 with one-in-five (20%) respondents saying they are likely to purchase a home in the next two years, compared to 36% in 2021 and 19% in 2020.

The research also found the need for more space may be taking a back seat with more than half of respondents in Quebec (56%) saying location is more important than buying a larger home as we return to normal. Only 21% say they are willing to be further away from amenities to afford a larger home. For Quebecers who rent, more than a quarter (26%) feel less pressure now to buy than during the peak of the pandemic.

"While there is still a significant amount of activity in the market, our research indicates that the rush of people looking to purchase a home over the last two years has subsided and we're now starting to see a move back to pre-pandemic levels," says Pascal Berger, Mortgage Specialist, RBC. "Between rising costs and the competitiveness of the market, Quebecers may now be taking a step back and setting aside more time to plan and save before making the jump into home ownership."

Stress, spending and rising prices
Of those who say that housing prices have impacted major milestones in their life almost two-in-five (38%, lowest regionally) respondents in Quebec say thinking about buying or saving for a home as prices rise is causing stress in their relationship, while 45% are stressed knowing they may need to buy a home farther away from family and friends. Almost a quarter (23%) also say that due to increasing prices they have/will need to live with their parents longer in order to save enough to buy a home.

The research also found that more than a third (36%) of Quebecers plan to continue to spend less post-pandemic so they can put the savings towards buying a home, while 22% (lowest regionally) believe they will struggle to cover the cost of owning a home as they return to pre-pandemic spending habits.

"Buying a home is the largest purchase most people will ever make, so it's natural that it comes with a certain level of stress, especially in today's market," says Berger. "While home buyers can't control market factors, taking the time to create a plan and understand where they are financially can help them feel more in control of the home buying process."

On the rise: Interest rates, inflation and home buying budgets
While half (50%, lowest regionally) of respondents in Quebec are concerned about interest rates rising in the coming year, a similar amount (51%, highest regionally) say they and/or their family are well-positioned to weather a potential increase. One-in-five (19%) Quebec respondents with a mortgage haven't yet considered what they could afford if rates were to rise.

When it comes to rising inflation, 44% of respondents in Quebec are worried about the impact it will have on their ability to purchase a home, while 48% (lowest regionally) are concerned it will affect their ability to cover the costs of owning a home.

The research also found there has been a big increase in how much Quebecers plan to budget and save for a home. On average, respondents who have a budget in mind if they were to purchase a new home, say their budget would be $352,578, compared to $298,971 in 2021. At the same time, those who already have some savings earmarked for a home purchase say they now have $125,152 on average set aside (up from $91,803 in 2021).

"With the rising costs Quebecers are facing, having a clear picture of your finances is a must. An expert can give you advice on planning for rising interest rates, increases in the cost of living and changes to your personal finances or home buying budget," adds Berger. 

Berger adds that for those thinking about purchasing a home, understanding the process and knowing what you can afford are important first steps. Whether in person or virtually, RBC mortgage specialists can help give prospective home buyers the certainty and confidence they need every step of the way.

• With the help of an RBC Mortgage Specialist or the RBC True House Affordability tool, home buyers can see how much they could afford and learn about different mortgage options.
• Ready to sell? The RBC Home Value Estimator helps current homeowners see what their home may be worth today.
• Home buyers can also access helpful articles and resources by visiting discover.rbcroyalbank.com/homes/, including the Mortgage 101 and Home Buying 101 Series. 

National and Regional Data Tables

Question	Quebec	National	B.C.	Alberta	SK/MB	Ontario	Atlantic Canada
Strongly Agree/Agree Responses
I am likely to purchase a home in the next two years.	20%	23%	23%	28%	20%	25%	19%
As we return to normal, location is more important than buying a larger home.	56%	59%	61%	62%	53%	61%	52%
I would rather buy a larger home than be closer to amenities.	21%	25%	25%	22%	30%	27%	26%
Renters: I feel less pressure now to buy than during the peak of the pandemic.	26%	27%	26%	28%	26%	26%	41%
Rising house prices have impacted major life milestones: Thinking about buying or saving for a home as prices continue to rise is causing stress in my relationship.	38%	47%	49%	59%	44%	50%	40%
Rising house prices have impacted major life milestones: Thinking about having to buy a home farther away from friends and family due to rising house prices is causing me stress.	45%	54%	59%	62%	47%	57%	41%
Rising house prices have impacted major life milestones: I have/will need to live with my parents longer in order to save enough to buy a home.	23%	30%	30%	39%	31%	34%	16%
I am feeling financially overwhelmed.	26%	40%	42%	45%	51%	43%	45%
I am worried my financial position may deteriorate over the next year.	32%	42%	45%	50%	43%	44%	42%
I am providing financial support (or additional financial support) to my family because of the pandemic.	16%	21%	19%	25%	18%	23%	23%
I plan to continue to spend less after the pandemic so I can put the savings towards buying a home.	36%	37%	37%	38%	36%	39%	34%
I believe I will struggle to cover the cost of owning a home as we return to pre-pandemic spending.	22%	33%	40%	36%	33%	38%	33%
I am concerned about interest rates rising in the coming year.	50%	60%	62%	69%	65%	63%	60%
I or my family is well-positioned to weather a potential increase in interest rates.	51%	47%	45%	47%	44%	48%	36%
Mortgage holder: I haven't yet considered what I could afford if mortgage rates increase.	19%	22%	22%	24%	15%	24%	26%
I am concerned about the impact rising inflation will have on my ability to purchase a home.	44%	48%	53%	50%	48%	50%	43%
I am concerned about the impact rising inflation will affect my ability to cover the costs of owning a home.	48%	54%	57%	58%	54%	57%	54%
Excluding $0 responses
Have a budget: Average home buying budget if they were to purchase	$352,578	$506,646	$692,741	$423,001	$325,399	$653,100	$253,672
Currently have savings for a home: Average amount saved for buying a home	$125,152	$196,286	$288,451	$201,729	$172,384	$222,516	$66,425

About The Survey
An online survey of 2,753 Canadians was completed between January 13 to January 29, 2022 using Leger's online panel, LEO. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90%. A probability sample of the same size would yield a margin of error of ±1.9 per cent, 19 times out of 20.

Poll aggregator 338Canada.com gave Leger the highest rating among all polling firms in Canada for the accuracy of its studies. See https://338canada.com/pollster-ratings.htm.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 88,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

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SOURCE RBC Royal Bank

Arjun Lombardi-Singh, RBC Communications, [email protected]