The current situation in the Canadian housing market has both buyers and sellers stepping to the sidelines.  But underneath all of the recent shuffling there still seems to be a firm, foundational desire to own a home.

The annual affordability survey conducted by RE/MAX suggests rising interest rates have become a significant, growing concern for those looking to get in to the housing market.  Twenty-four percent of respondents cite rising rates as a barrier to entry, up 6% from the last survey.  Closely related to interest rates, 24% say “market volatility” is keeping them out.

The survey suggests, though, that the biggest barrier to entry remains high prices.  Forty-three percent pointed to high cost, an increase of just 1% from last year.

Other key factors:

35% – higher cost of living

24% – a shortfall in salary.

But the survey also suggests Canadians remain determined to have their own home with 68% saying they are willing to make at least one sacrifice in order to realize that ambition.  Of those, 64% say they are prepared to relocate to get a home they can afford.  Half of those people, though, are not prepared to move more than 100 kilometres from their current location.  (RE/MAX speculates that this may be related to the decline in “work from home” opportunities.)

Other common sacrifices:

56% – adjusting the type of home they would purchase

29% – co-ownership with family or friends

27% – renting a portion of their home to generate income

Published by First National Financial LP