“More Canadians are willing to fight it out to secure a property, with 34 per cent of Canadians willing to enter a bidding war when it's time to buy a home, an increase of 6 points, or 21 per cent, from a year ago,” the BMO Home Buying Report released Wednesday states.
In a bit of positive news
for potential homebuyers and, perhaps, Canadians in general, housing price growth is expected to be outpaced by income growth in the year ahead.
“Calgary's market continues to see the strongest fundamentals; Vancouver has rebounded from a soft patch; while Toronto's market remains relatively balanced overall, though the condo market is more amply supplied," Robert Kavcic, senior economist, BMO Capital Markets said. "Overall, sales are expected to hold relatively steady in the year ahead, with price growth in the low single-digit range, below the rate of income growth."
The bank also warned buyers to not get too overzealous when entering a bidding war with fellow prospective purchasers.
“The competition for real estate in Canada, particularly in hotter markets, can be fierce, however it's important that buyers avoid getting caught up in the moment and respect the budget parameters they've established," Laura Parsons, mortgage expert with BMO Bank of Montreal said in the release. "For those willing to negotiate on the price of a home, the most important part of preparing is ensuring they get pre-approved by their bank so they know exactly what their limits are and can stick within them."
Will brokers see this as a sign that the housing market is alive and well?