With no end in sight to rising housing prices, some may be thinking about revamping their existing living space as a compromise.
But an increasing number of Canadians are holding off, because they don’t believe now is a good time to invest in their homes.
The Manulife Investor Sentiment Index, a semi-annual index based on investor views on range of asset classes, finds home investment dropped four points in the last six months, and has been in a steady decline since May 2014.
Home investment has been classified as purchasing, renovations and paying off the mortgage.
“Canadians say that owning a house is a top priority for them, yet they’re not willing to invest in housing right now. Perhaps investors are feeling the timing for this investment isn’t right. Many real estate markets are red-hot right now, which makes it difficult for Canadians to purchase a home, even if it is a priority for them. There are concerns that this housing bubble might just burst, leaving them with a bad investment.” – Kevin Headland, Senior Investment Strategist, Manulife Investments.
Some index findings:
-80% said owning a home was the primary goal, but only 25% who rent said they are planning to buy a home in the next 12 months
-nearly 23% felt it wasn’t a good time to buy a home due to affordability, volatile real estate market and not enough confidence in personal finances.
-35% said it was a good time to buy because of low mortgage rates and the feeling that a home is a secure investment.
-44% said they planned on staying in their own homes when they retire.
The full report can be seen here.