Canadians are more optimistic about the housing market in 2023, according to new poll from RBC, but many are unsure about whether it‘s the right time to make a purchase.

 "There has been a big shift in Canadians' sentiment around the housing market, including an increase in uncertainty around where the market is today," Nick Palucci, senior director of home equity financing at RBC, said in a news release on Tuesday.

"But spring is typically a busy home buying season and many potential homebuyers may be seeing a window of opportunity opening for them."

Results from RBC’s annual Home Ownership Poll, published Tuesday show 40 per cent of Canadians expect to pay less for a home in 2023. However, it also showed uncertainty among Canadians about the current housing market. Twenty-five per cent of people said they are unsure about the type of market Canada is in, while 18 per cent “don't know whether now is a great time to buy.”

ECONOMIC BACKDROP

Tough economic conditions were also on homebuyers’ minds. Just over a quarter of survey respondents said the possibility of an upcoming recession in 2023 had them thinking about delaying a home purchase.

More than half of respondents were worried about their financial position maybe deteriorating over the next year, which RBC said “could be contributing to why only 22 per cent would give an immediate family member or their child money for a new home,” down from 26 per cent a year earlier.

OPTIMISTIC FIRST TIME BUYERS

Despite uncertainty about timing and finances, most respondents said they thought the seller’s market had peaked, with just 37 per cent considering the housing market a seller’s market, compared with 71 per cent a year earlier. Nearly a third of respondents said they believe “there is only a small window of time to take advantage of lower house prices.”

First-time homebuyers showed more optimism about the housing market than they did in 2022. Seventy-three per cent of pre-first time homebuyers said a house or condo is a good investment, up from 53 per cent last year, and 41 per cent said they think the housing market is strong, up from 30 per cent in 2022.

Nearly 80 per cent of first time homebuyers also felt they were in a better position to buy a home than in previous years, 65 per cent were optimistic about the housing market over the next year, and 51 per cent said they believe homes will be affordable “in the near future.”

"We're seeing many Canadians taking extra time to plan, save and ensure they're getting into the market when it's right for them. At the same time, there has been a wave of optimism among buyers who are looking to get into the housing market for the first time," Palucci said.

He said people should speak with an expert to explore home buying options and develop a plan.

METHODOLOGY

An online survey of 2,756 Canadians was completed between January 10 and January 23, 2023 using Leger's online panel, LEO. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. No margin of error can be associated with a non-probability sample (i.e. a web panel in this case). A probability sample of the same size would yield a margin of error of ± 1.9 per cent, 19 times out of 20.