A new report from Zolo showcases how significantly home buying has changed for Canadians in recent years. From 2020 through 2021, home prices broke records nationwide, with high consumer demand and a low inventory of homes for sale. However, in 2022, that trend started to reverse, leading to real estate markets that look dramatically different.
A recent Zolo survey polled 800 Canadians to ask them how, when, where, and why they bought a home in 2022. The results outlined in the 2023 Canada Housing Market Report show significant findings, including:
- Family financial support is increasingly critical in home buying for almost half of Canadians.
- 47% of homebuyers spent one to two years browsing real estate listings before starting to house hunt in earnest.
- Virtual viewings and long-distance purchases are out of favour – in 2022, most respondents viewed their homes in person between two and four times before making an offer.
Almost Half of Homebuyers Receive Financial Help from Families
In today’s landscape of high mortgage rates, financial gifts from family are the norm.
- 47% of homebuyers reported receiving money from family as a gift or inheritance to boost their down payment.
- 24% of respondents reported using their partner’s family’s money to make that purchase.
Family financial gifts are essential in making housing more attainable. Mortgage expert and author Angela Calla shared, “While today’s qualifications are income times three, for example, $100,000 per year qualifies you for a $300,000 mortgage, adding any outside debts to that usually reduces that ability.”
47% of Homebuyers Start House Hunting Years in Advance
Homebuyers use social media and real estate websites to find their ideal homes before viewing in person.
- 47% of homebuyers spent one to two years browsing real estate listings before beginning their house-hunting journey.
- When they did start looking, 31% of them only viewed between four and six homes before making an offer.