Many B.C. residents who are prospective homebuyers are cutting non-essential expenses and essentially spending less on fun and leisure to save up and buy a home.
According to a new survey from TD, interest rate cuts have made the prospect of buying a home more realistic for many B.C. residents, but despite the rate cuts, potential homebuyers still have to make some sacrifices to make a purchase.
Of those surveyed, 53 per cent said they’re cutting back on non-essential expenses. We spoke to a TD spokesperson to get a deeper understanding of what the numbers represent and what demographics we’re dealing with.
TD surveyed potential buyers who are 18+. In the 18-34 age bracket, 53 per cent of respondents said they’d cut back on non-essential expenses, and 62 per cent of respondents aged 35 to 54 said the same. Both groups are cutting back on non-essential expenses to save for a home.
We asked TD what non-essential expenses meant in the context of the survey. TD said prospective buyers are cutting out the nice-to-haves rather than the need-to-haves (rent and groceries).
Things like shopping, eating out, and taking vacations.
Another finding from the TD survey is that only 42 per cent of respondents are seeking financial advice. Yet, 40 per cent of prospective buyers say that quick access to advice would “boost their confidence.”
Social media also plays a role in this reality.
“Some people may feel like they can do their own research and rely on social media, but the risk in doing that is that you may not be getting informed advice tailored to your unique needs,” the TD spokesperson said.
TD also informed Daily Hive that markets expected the Bank of Canada to “hold the line on rates this week,” and the Bank did so earlier today.
“April was yet another subdued month for home sales, as economic uncertainty likely continued to keep potential buyers sidelined. With last month’s soft showing (and weak momentum heading into the quarter), we’re currently tracking another decline in home sales in Q2 following their sizeable first quarter contraction.”
Despite the decline, TD says that it’s not uncommon for the Canadian real estate market to surge after a lull.
“If confidence improves later in the year (which is our view), the market could see sales pop. However, Canadian average home price growth is likely to remain a laggard for much of the year, given very loose supply/demand balances in B.C. and Ontario.”
Are you in the market to buy a home in B.C., and have you also been cutting back to save? Share your experience in the comments.
- You might also like:
- Two rental housing towers eyed for Kingsway near Fraser Street in Vancouver
- South Vancouver is being heard as swimming pool hopes surface
- Bank of Canada holds key interest rate at 2.75% for a second time