A rising number of Canadians don’t think it’s a good time to invest in homes, a poll for Manulife shows.
Manulife’s latest investor sentiment reading showed that “investing in your own home as an asset class” dropped four points in the past six months, having consistently fallen since May 2014. The poll defines such an investment as purchasing a home, paying off a mortgage or investing in renovations.
While 80% of respondents said owning a home was their primary goal, only 25% of renters said they plan to buy a home in the next 12 months.
Economists have warned of overheated markets in Vancouver and Toronto, with spiking prices that shut many families out of the market.
“There are concerns that this housing bubble might just burst, leaving them with a bad investment,” Kevin Headland, senior investment strategist for Manulife Investments, says in a statement. “Perhaps investors are feeling the timing for this investment isn’t right. Many real estate markets are red-hot right now.”
The poll found 23% of Canadians feel it’s not a good time to buy a home, with 72% saying housing isn’t affordable and 32% feeling the real estate market is volatile. Twenty percent of respondents cited their personal financial situations.
More than a third (35%) said it’s a good time to buy a house, citing low mortgage rates and a secure investment.
Environics Research conducted the research for Manulife, surveying 1,500 adults online in May.