Ontarians seem hopeful about the provincial real estate market, according to new research conducted by Ipsos Reid on behalf of the Ontario Real Estate Association (OREA). A third of Ontarians say the market will strengthen rather than weaken (21%) in 2014. Looking even further ahead – ten-year’s time – significantly more Ontarians believe the Ontario real estate market will strengthen (50%) rather than worsen (20%), speaking to the long-term investment value of owning a home.
“The research comes on the heels of an optimistic forecast by the Canadian Real Estate Association,” says Sean Simpson, vice president, Ipsos Public Affairs. “Consumers seem to be echoing a similar sentiment for the 2014 real estate market. Prospective buyers and sellers in particular are also more likely to believe the overall economy is strong, which may be why they’re considering buying or selling their home in the next two years.”
Two in three (65%) Ontarians who are at least somewhat likely to buy a home in the next two years believe the economy is in good shape, compared to just 53% of Ontarians overall who think the economy is ‘good’. Six in ten (59%) Ontarians looking to sell in the next two years believe the economy is ‘good’.
The study, the first of its kind for OREA, examined public opinion in Ontario on a variety of matters pertaining to consumer sentiment of the Ontario real estate market. The findings include:
- Six in ten (59%) Ontarians believe the current real estate market in Ontario is ‘favourable’. Two in ten (18%) Ontarians believe the market is ‘not favourable’.
- Two thirds (67%) of homeowners believe the market is ‘favourable’, compared to 47% who currently don’t own a home. Ontarians who said they are somewhat likely to buy or sell a home in the next two years are even more likely to believe the market is favourable (70% and 77%, respectively).
- Homeowners are more likely to believe the market has improved in the last year (31% stronger vs. 21% weaker), looking ahead to the next year (34% stronger vs. 16% weaker), and in the next ten years (55% stronger vs. 18% weaker). Prospective buyers and sellers are most optimistic with a majority saying the market will be stronger in the next year (54% and 50%).
Regional Survey Highlights
- Residents in the 905 area of the GTA are most likely to say their market is favourable (71%), followed by those living in Toronto proper (61%), Eastern (58%), Southwestern (54%), Northern (47%) and Central (45%) Ontario.
- When looking at local economies, the GTA (63%) and Eastern Ontario (54%) have the most positive outlooks, while Central (37%) and Northern Ontarians (42%) are most pessimistic.
- GTA residents are most ‘likely’ to buy (16%) and sell (17%) a home in the next two years. Residents in Northern Ontario are least likely (4%) to buy a home in the next two years, while Central Ontarians are least likely to sell (5%) a home in the next two years.