More Canadians plan to buy a new home by 2012, says RBC

More Canadians plan to buy a new home by 2012, says RBC study

Mon Mar 8, 8:34 AM

The Canadian Press

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TORONTO - A new study by the Royal Bank suggests more Canadians are very likely to buy a new home in the next two years.

Ten per cent of the 2,047 people surveyed for the 17th annual RBC home ownership study said they plan to buy a home by 2012 - up from seven per cent two years ago.

The bank says 15 per cent of those in the 18-to-24 bracket say they are very likely to buy - almost double the level recorded in 2009.

The RBC study also found that 91 per cent of Canadian homeowners believe a home is a good investment, the highest level in 12 years.

One-quarter of those surveyed, 26 per cent, said they expect their home to be their primary source of income when they retire.

In addition, 44 per cent of Canadians who plan to buy a new home in the next two years plan to take a fixed rate mortgage.

"With the Canadian housing market showing continued vigour, it's not surprising that Canadians feel more confident in the long-term value of owning a home," said RBC senior economist Robert Hogue.

"Exceptionally low mortgage rates and improved affordability have been key reasons for the resurgence in the housing market this past year."