Earlier this year, Canada Mortgage and Housing Corporation (CMHC) published the study Examining Escalating House Prices in Large Canadian Metropolitan Centres. In this study, we included some results from a homebuyer motivation survey that we had created. Now, we’re publishing a report to offer a more detailed look at the survey and its results.
Background on the survey
CMHC wanted to better understand the thinking and behaviour of homebuyers. Why? So that we could learn more about the reasons for the rapid house price growth seen in Vancouver and Toronto. For this reason, we designed a questionnaire that we sent out to 30,000 recent homebuyers in Vancouver, Toronto and Montréal.
Here’s some of what we concluded from the survey’s results:
- In both Vancouver and Toronto, 48% of homebuyers spent more than they had budgeted to buy their home. In Montréal, only 24% of homebuyers spent more than they’d budgeted.
- In Vancouver and Toronto, about 55% of buyers were involved in a bidding war when they bought their home. In Montréal, the figure was 17%.
- In Vancouver, 68% of survey respondents believe foreign investors have a lot of influence on driving home prices higher. In Toronto, the figure was 48%.
What’s really interesting is the amount of influence homebuyers believe foreign investors have on driving house prices higher. In reality, data shows that foreign or non-resident buyers likely have less influence than homebuyers think. In another recent survey, we had reported that the share of non-resident owners of apartment condominiums was:
- 2.2% in Vancouver
- 2.5% in Toronto
By comparison, Statistics Canada reported the share of non-resident ownership for all properties was:
- 4.8% in Vancouver
- 3.4% in Toronto