Amidst the volatile real estate market of the past few years, it is no surprise that the primary reason for purchasing property in 2024 is that it is still perceived as a safe investment.

69% of respondents said they plan to renovate their home in the next five years.

Near half of respondents approached in the survey expressed concerns of default. To manage default risks, many are cutting expenses, which may reflect in consumer spending patterns.

On average, Canadians are dedicating 4.2 years to save for their down payment. 30% of buyers received a gift to help with the cost, with the average gift about $77,000. It was interesting to see that the BC residents received an average gift of over $150,000.

The primary concern for potential homebuyers is overpaying, even more so than rising interest rates or unforeseen housing costs.

In the past 18 months, interest rates hit their highest level between May 2023 – Jan. 2024

The most common unexpected expense during the homebuying process is immediate repairs, affecting 36% of buyers.

It is crucial to understand that with proper guidance, costs such as third-party fees, land transfer taxes, and moving expenses shouldn't come as a surprise. Instead, buyers should be well-informed by a communicative and engaged real estate broker.

Another noteworthy trend is the shift towards extending amortization periods upon renewal instead of sticking with the original terms. For instance, homeowners with an initial 25-year amortization who have paid down their mortgage for five years are opting to reset to a 25-year term to lower monthly payments. This "extend and pretend" strategy is a common response to rising debt costs. Consumers are also starting to look for renewal terms of three years or less.

One last key takeaway: regardless of the reason to buy, concerns of purchasing a home, or buyer type (first time homebuyer, repeat buyer, etc.) a real estate agent has consistently been the most valuable contact for buyers to make informed decisions in the home buyer process.

The report takes a deeper dive into consumer attitudes and behaviours; if you've got the time, it is definitely a good read. Full report can be found here.

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