Canadians have been abandoning their dreams of ever owning a home amid a rise in real estate costs countrywide.
Data released Monday says 36 per cent of adults younger than 40 have given up, according to a Royal Bank of Canada survey of 2,000 Canadian adults.
Of them, 62 per cent expect the majority of prospective buyers to be priced out of the real estate market within the next decade.
“The last year has created both challenges and opportunities for homebuyers,” said RBC home equity financing specialist Amit Sahasrabudhe.
“Many Canadians have been taking advantage of reduced spending over the year to build up their savings and get closer to making their dream of owning a home a reality.”
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Fourty-four per cent of those surveyed have been able to save more for a home. Of those likely to purchase within the next two years, 60 per cent are putting away an average of $789 per month.
The jump to buy is fuelled by a concern that homes will become less affordable and interest rates will climb, according to the poll.
Sahasrabudhe recommends prospective homebuyers put their finances through “a stress test” to see if they “can continue to carry the cost of owning a home if interest rates increase.”
The average price of a house in Canada was $678,091, according to Canadian Real Estate Association’s February estimate.
Nearly half of Canadians surveyed said their budget is less than $500,000.
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