Nov. 20, 2009- Canadians are more optimistic this year, feeling now is the best time to buy a home and are confident that the value of their homes is rising. However, with this optimism comes caution, according to the latest Canadian Association of Accredited Mortgage Professionals (CAAMP) report.
Sixty one per cent feel confident going into the housing market and leaving the recession behind them, which is nearly double the 38 per cent of Canadians who felt this way last year, according to report.
The Canadian mortgage market is rebounding like never before and is expected to surpass the $1 trillion mark in 2010, according to the report.
Because housing prices are expected to rise and the market is likely to bounce back, an overwhelming 40 per cent of Canadians are confident that now is the best time to get a great price on a home. Only a small number of Canadians expect house prices to fall, and more than 50 per cent expect stable housing prices, according to the report.
Even Canadians in provinces hit hardest by the recession are optimistic. Forty-two per cent of Ontarians, 43 per cent of Albertans and 47 per cent of British Colombians feel housing prices will increase within the next year, according to the report.
In Quebec, however, 13 per cent - the most of any province - feel house prices will decline.
Despite a positive outlook, many Canadians are following the hesitancy of Quebecers. In fall 2008 and spring 2009, 4.6 and 4.5 per cent respectively planned to buy a home. This number has dwindled to only 3.2 per cent. The CAAMP report suggests this could be a sign of the recent robust housing activity slowing.
With interest rates remaining low, many Canadians are satisfied with their mortgages. Seventy-three per cent of Canadians received lower rates than their original mortgage term, according to the report.
"Mortgage consumers have been busy, and have effectively capitalized on low interest rates to shop and renegotiate," says Jim Murphy, president and CEO of CAAMP.
Despite continued job loss concerns and hesitant homebuyers, many Canadians are in sound financial condition to purchase a home.
"While many Canadians have been negatively affected by the recession and worry about the future, the vast majority are in solid financial situations," says Will Dunning, CAAMP chief economist. "Consumers continue to be thoughtful and strategic about their mortgage decisions, treating home ownership as the bedrock of their personal financial plans, and their decisions have provided stability as we weather these challenging economic times."