British Columbians most likely to buy property.

In the face of a sagging real estate market in the U.S., it wouldn’t be surprising to find out that many British Columbians had shied away from making further investment this year. But, according to a survey on homeownership released by RBC Royal bank in March, British Columbia’s housing market is not suffering from the same drought as its southern neighbor, and confidence among current and prospective homeowners remains strong.

The Royal Bank’s 14^th annual poll shows not only that home-buying intentions remain strong, but also that the time is ripe for buying. Nearly 60% of respondents said that now is the best time to buy, rather than waiting a year or two.

Although the housing bubble is pure speculation at this point, it may be fueling the current home-buying frenzy. “A general expectation of higher housing prices and a concern about interest rate increases may explain why British Columbians are strongly in favour of buying over waiting,” said Kevin Lutz, regional manager, Mortgage Specialists, RBC Royal Bank. The bank survey showed that 65% of British Columbians expect that housing prices will be higher next year.

But, current homeowners remain confident in the worth of home ownership. The value of the British Columbian home is at an estimated $373,489, which is well ahead of the national average of $227,862. More importantly, homeowners estimate that the value of their homes has grown an average of 35% in the last two years.

Some characteristics of this year’s home-buying trends brought to light by the survey: the percentage of British Columbians who intend to buy a bigger home is 49%, and 80% plan to buy a resale home. The same numbers for Alberta were 43% and 76%, respectively.

Regards - Paul Isaacs

Phone: 604.921.1188   Cell: 604.250.1333   Email: paulisaacs@shaw.ca

Your West Vancouver Real Estate Specialist for over 30 years!