The Fall Home-Buying Report was released by BMO last week showing that people that are looking for a new home are expecting to pay a higher price than they first believed. The survey shows that 47% of potential home buyers in Calgary are expecting to spend 19% more on the purchase of a new home. This increase amounts to $89,389. The report says that most people that are hunting for a home expect that they'll have to pay $568,458.
The main reasons why these price expectations have gone up are as follows:
- 56% say they can save more money to make a down payment
- 86% have noticed rising house prices
- 81% have a better understanding of the current home prices
Housing prices have been on the rise in Calgary for quite a while now and on a year-over-year basis have gone up by 5.82%. This is higher than the national levels and higher than the overall Alberta levels.
The BMO report also shows that 43% of Canadians are expecting to pay 21% more for their upcoming new home purchase, which is an $83,556 increase over the initial price that they were planning to spend. In Toronto, 57% of home hunters plan to spend more. This city recorded the highest increase in Canada in regards to the amount that they would have to spend.
In the condo market, the report showed that 76% of potential buyers believe that a condo won't be able to hold its value in the future compared to detached houses, town homes and semi detached properties. As well, 80% of those surveyed said that they would prefer a townhouse, semi detached or a detached home rather than a condo as long as one could be found that matched their budget.