In a new report published this week, Toronto-based Zoocasa took an in-depth look at how the housing market has changed between August and February 2021.
To gather this information, Zoocasa surveyed 1,400 respondents on topics related to market affordability, home preferences and remote work.
80.5 percent of respondents to the survey feel that the Bank of Canada cutting its mortgage-influencing overnight rate to 0.25 percent is driving up the cost of homes. This position has increased substantially from just 32.8 percent of respondents holding this opinion back in February.
Only 7.4 percent disagree that low mortgage rates are the reason for high prices, an increase of 4.1 percent from six months ago. Further, less than half of Canadians surveyed or 47 percent agree that lower mortgage rates have resulted in homes becoming more affordable. This is a decrease of 3.8 percent from February. Regarding the question of lower rares helping buyers back in February 2021, only 34.4 percent of respondents agreed with that statement.
When asked whether home prices have squeezed people out of urban areas, 77.2 percent of respondents agree. This is an increase from 25.4 percent just six months ago. Those who participated in the survey cited affordability, bidding wars and timing as their top three concerns regarding the Candian housing market.
Of those who participated in the survey, 56.55 percent aim to buy a home, with only 50 percent of this group stating that they have a household income of above $100,000. People hoping to buy detached homes were more likely to earn six figures, amounting to 52.5 percent of this group of respondents.
Across the board, outdoor space, including a yard, deck or balcony, remains essential to home buyers, with 65.8 percent of respondents still viewing these features as a priority. That said, this is a decrease of 10.5 percent from six months ago during the height of the pandemic.