A recent survey conducted by Zoocasa, a real estate company, has revealed an increasing concern among its 1,634 blog readers and newsletter subscribers over potential mortgage rate hikes in Canada. The survey, which used 32 multiple-choice questions to gauge public sentiment on the Canadian real estate market, found that apprehension about potential rate increases now stands at 79.1%, a notable rise from 71.3% in the spring.
This data points towards a declining affordability and a shift in real estate market sentiment, particularly among first-time homebuyers, of whom 86.3% expressed concern. These findings come ahead of an expected rate decision from the Bank of Canada.
The central bank's economists anticipate that the policy rate will remain at five per cent, unchanged since the previous decision and a significant increase from 0.25% since March 2022. The survey respondents showed mixed reactions to the bank's previous rate pause: 23.3% felt it positively impacted the real estate market, while 16.1% disagreed strongly and 38.8% remained neutral.
Moreover, the survey also revealed strong disagreement with the Canadian government's housing policy among 38.9% of respondents. This sentiment is particularly prevalent due to anticipated inventory challenges arising from the government's plan to welcome approximately half a million newcomers annually in 2024 and 2025.
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