Canadian Home Buyers Savvy and Optimistic

Canada Mortgage and Housing Corporation’s (CMHC) 2009 Mortgage Consumer Survey results were released last week, and indicate that nearly 90% of recent home purchasers across the country believe that home ownership is a good long-term investment and that almost 70% think that now is a good time to purchase a home in their community.

Buyers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86% are of the view that the level of total housing and other monthly payments should generally not exceed 40% of gross household income, which is in line with generally accepted mortgage lending practices.

Recent buyers are prudent mortgage managers.
According to the survey, 75% of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20% of recent purchasers report having made a lump sum payment to their mortgage.

Montreal Market Forecast 2009 – CMHC

In 2009 the Montreal Real Estate market will become gradually more balanced, according to the CMHC 2009 market forecast.

Given that sales will fall and listings will rise, the market will ease slightly over the coming year. Average resale prices will continue to increase, but more slowly than in recent years.

A higher proportion of condominium sales will take place in the suburbs and in the less expensive sectors on the Island of Montréal, which will contribute to limiting the growth in prices. For the market overall, prices will therefore rise by 4 per cent in 2008 and by 3 per cent in 2009. Still, on the whole, the market will remain favourable to sellers in the short term and gradually ease toward more balanced conditions in 2009.

Here is the breakdown of the report:

  • Mortgage rates are expected to be relatively stable
  • Resale market will be moderately slow
  • Condominiums will maintain more demand than single family houses
  • Supply of home listings with a slight increase.
  • Affordable homes are expected to register increases in starts.
  • Prices for single family homes and plexes will go up by an average 4 % in 2009
  • Condo prices are expected to grow by 3%