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Buyers are willing to pay more for their home

Buyers are willing to pay more for their home

Three-quarters of Canadian buyers expect the cost of housing to continue rising over the next year, according to a recent survey by BMO.

The survey released Monday showed that 84% of buyers expect inflation to continue to rise and three-quarters expect further rate hikes.

These financial barriers have a significant impact on the purchasing plans of these consumers, in terms of what they will buy and when they will buy it.

Most understand that they will have to spend more; The impact on lead times is being shared, with some buying early before prices rise further, while others are waiting to see if prices come down, said Hassan Pernia, head of retail lending and housing finance products, BMO Financial Group.

Thus, 68% of respondents indicated that they would like to change the amount they intend to spend on purchasing their home. 73% are willing to spend more, either because of higher prices (for 55% of them), because of their increased income (28%) or thanks to the savings made during the pandemic (27%).

The survey shows that over the past year, the amount expected to buy a home has increased 100,000%, up 26%. On average, homebuyers across the country can expect to pay $588,000.

Moreover, interest in buying a home in major urban centers increased by 5% in one year in the country, while preference for moving away from major centers decreased with return to the office.

The survey was conducted online between February 24 and March 7 among 1,003 Canadians planning to buy a home in the next 12 months.

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