The latest BMO Real Financial Progress Index reveals that 67 percent of homebuyers are waiting for interest rates to drop before purchasing a home, a five-percent decrease from 2024. Additionally, 74 percent are reporting they are taking a “wait and see” approach to buying a new home due to economic concerns.
Thirty-eight percent of respondents said they are waiting for rates to drop below three percent before purchasing or refinancing a home. A further 52 percent reported they would move to a different province or country to afford a home.
“Canada’s housing market remained under pressure heading into the spring, with sales and prices both weakening further,” said Robert Kavcic, senior economist, BMO Capital Markets. “There is some clear underlying weakness as inventory builds and investors remain absent. Suffice it to say, homebuyers are losing confidence and motivation, especially in areas of B.C. and Southern Ontario.”
Forty-five percent said they would consider buying a home with friends, family members, or other people they are not romantically involved with, with Gen Z (63 percent) and Millennials (50 percent) being the mostly likely to consider a shared homeownership approach.
