How’s everyone feeling about the housing market?

Canadian homeowners generally have a large chunk of their wealth invested in real estate. So, it’s not surprising to hear 38% of them say the money they’ll get from selling their home will be their main source of retirement income. “It makes sense that homeowners want to take advantage of the equity in their homes for retirement. That’s a classic financial planning move, just don’t make it your only move,” Lucreziano says. “What if you’ve been paying off your home for decades and now you want to retire but it’s not the right housing market to sell? It’s important to diversify your retirement income so you have more options.”

Not too long ago, a new “For Sale” sign seemed to pop up every 5 minutes. It’s a different story today. The survey revealed that 66% of homeowners are likely to stay in their current homes longer than expected due to the current housing market. “If you’re not in a position where you have to sell your home right now, it makes sense to be cautious,” Lucreziano says. The survey also revealed 40% of homeowners may consider selling their home when the economy stabilizes. “A lot of sellers are playing the waiting game right now.”

Regrets, we’ve had a few. While 87% of current homeowners are proud to have achieved their goal of homeownership, there’s been some “would’ve, could’ve, should’ve” feelings for buyers and sellers alike. Over a third (37%) said they wish they’d bought a home when mortgage rates were lower. Nearly as many (29%) said they were concerned they overpaid for their new home. And many (30%), wish they’d sold at the peak of the market.

Investing in real estate can be a smart financial move, but it's not for everyone. According to our poll, 1 in 5 Canadian homeowners are landlords and most homeowners have no plans to ever own an investment property. However, there's a growing interest in investing in the market, with 44% of current homeowners believing that now is a good time to get in.

“A well-chosen investment property in a thriving market can generate a steady stream of rental income and appreciate in value over time,” Lucreziano says. “However, it’s essential to do your homework before jumping in. Consider factors such as location, rental demand, vacancy rates, and local bylaws.” Lucreziano also says that it’s important to treat it like a business and write down a business plan. “You need to make sure you forecast all of your monthly costs to know whether you’ll have out of pocket expenses before your rental starts turning a profit.”

What’s making us move? Among those planning to purchase a home in the next 1 to 2 years, 38% want a home in a neighbourhood better suited to their desires and lifestyles. “That makes sense,” says Lucreziano. Our needs and preferences change over time, and sometimes our current location no longer suits us.”

The poll also found that 26% of people planning to purchase a home are upsizing, while 12% are looking for something smaller. For 19% of people, the draw of city living is fading and they're looking to move out of the city. For another 14% of people, moving closer, or into the city, is the goal.

“Whatever your reason for moving, it's essential to take your time and do your research. Moving can be stressful, and finding the right home takes effort,” Lucreziano says. “Remember, a home is more than just an investment – it's where you'll build memories and make a life. So, choose wisely and enjoy the journey.”

As the housing market continues to be competitive, more people are thinking outside the box and outside their area code. For example, 60% of non-homeowners are willing to move outside of a major city to get more for their money on a home, and 41% would consider buying a home with friends or others.

“This can be a great way to pool resources and make homeownership more affordable. Just be sure to have a solid agreement in place and consider all the pros and cons of co-ownership,” Lucreziano says. Even current homeowners are exploring creative options, with 30% considering taking advantage of the multi-generational home renovation tax credit in the next 5 years.

Renters are also feeling the pressure of inflation, with 51% of non-homeowners saying that rising rents have them wanting to purchase a home in the next 1 to 2 years.

“With rental costs skyrocketing, many renters feel that if they can scrape together a down payment, they might as well buy something because they're going to be paying a lot either way,” Lucreziano says.

While 46% feel they are in a better position to pay rent than they were a year ago, 64% worry they won't be able to keep up with future rental costs. It's no wonder that 42% would consider renting with a non-relative to reduce their monthly rent burden. “Just be sure to choose your roommate wisely, set clear expectations and boundaries and protect yourself by having a solid rental agreement and getting professional legal advice,” Lucreziano advises.