Buyers Gaining Confidence In The Toronto Real Estate 

Market   Mar  10 2009
Consumer confidence is on the upswing as young Canadians say they are very likely to make the final plunge into the real estate market in the coming year. According to the Royal Bank of Canada’s yearly home ownership survey, bleak news of the past is being brushed aside by fresh optimism.

This year’s survey involved 2,026 Canadian consumers, who were polled on a variety of real estate-related topics during the second week of the New Year. The results showed that a whopping 65 per cent of participants are convinced that today’s market is a buyers’ market.

Out of all the respondents, a solid 9 per cent sounded very ready to buy. Nine per cent professed it was “very likely” they would enter the market as a buyer some time in 2009 or 2010. Twice that percentage said they were somewhat likely to do the same.

Sellers are likely to notice a high percentage of interested buyers in the 35-and-under age group. Young buyers, it seems, are particularly interested in taking advantage of today’s falling prices and low interest rates. The bank’s survey reported that a huge 48 per cent of respondents in the 35 and under group said they intend to buy in the very near future. This is a dramatic climb from last year’s 36 per cent for this same age category.

While it’s quite true that recent home sales don’t synch with the report, the numbers do show that homebuyers are gearing up to enter the market. There are other indicators that stabilization is on the way, as well.

The number of new listings on the Toronto real estate market was down a comfortable 11 per cent in February 2009 versus the same month last year. If this trend continues, we could see a more balanced market in the near future. This will be good for sellers, especially with the interest in buying on the rise.

If the Royal Bank of Canada is right, we could see a year of improvements ahead. With more home buyers interested and the market showing signs of stabilization, the news is getting better all the time. Back to Blog