Next to detached homes, condos most popular real estate choice with Ontarians
The Ontario Home Ownership Index is designed to reflect Ontarians’ overall views of the residential real estate market in Ontario, and incorporates measures such as Ontarians’ perceptions of whether the market in their neighbourhood, city, and Ontario, respectively, have improved or worsened in the last year and looking ahead into the future, whether home ownership is important to them and whether it is a good investment in the long-term. The first wave of the index, conducted in the fall 2013, was set to a baseline of 100 points. A rise to 108 this spring reflects an overall improvement in sentiment of 8% in the index since the fall.
A quarter of Ontarians (28%) planning to buy a home in the next two years say they plan to purchase a condo/apartment, with the majority (59%) saying they will buy a detached house, according to new research from the Ontario Real Estate Association (OREA). Released today, The Ontario Home Ownership Index, a semi-annual province-wide research study commissioned by OREA and conducted by Ipsos Reid, reflects on Ontarians’ outlook of the residential real estate market, their real estate plans and market trends.
“Interestingly, Torontonians led the charge in the condo category, with 41% saying they plan to purchase a condo/apartment,” says Costa Poulopoulos, president, OREA. “In comparison, only 23% of all other Ontarians have similar plans, underscoring Toronto’s unique condo market. Ontarians are confirming that no two real estate markets are the same, despite their proximity. Understanding local market conditions is important for home buyers and sellers as they prepare to purchase or list a home – consulting with a local Realtor who specializes in a particular market is a great way to get in-the-know.”
Taking a broader look at the province, Ontarians expressed positive perceptions of the current residential real estate market. A majority (57%) believe it is ‘favourable’, compared to only 20% who say it is ‘unfavourable’. Furthermore, half of Ontarians (52%) see the overall state of Ontario’s economy as ‘good’, compared to 29% that say it is ‘bad’.
Various factors play into the home buying and selling decision which The Ontario Home Ownership Index intends to explore over time. These were some of the findings from the spring 2014 research wave:
- 10% of Ontarians say they are ‘very likely’ to purchase a home within the next two years
- 14% of Ontarians say they are ‘very likely’ to sell a home within the next two years
- Three in ten (28%) Ontarians believe the current residential real estate market in their city or town is ‘very favourable’ and six in ten (57%) say it is ‘favourable’
- 82% of Ontarians agree that real estate is a good investment
- 84% of Ontario residents think it makes more sense to own a home rather than rent over the long-term
“Consumer perceptions often reflect what is currently happening in an area but they have also been known to signal the next movement,” says Sean Simpson, vice president, Ipsos Public Affairs. “There have been many ‘firsts’ in residential real estate over the last several years, and there has been a lot of speculation on what will happen next. These insights may offer a glimpse into what lies ahead in real estate markets throughout the province.”
Market expectations and predictions
- Compared to one year ago, a third (35%) of Ontarians say the Ontario real estate market is stronger while 18% say it is ‘weaker’
- A third (34%) of Ontarians say the Ontario real estate market will be stronger in the next year compared to 17% who say it will be ‘weaker’
- Looking ahead to the next ten years, nearly half (46%) of Ontarians see a stronger provincial market; 22% see a ‘weaker’ market
Home ownership perceptions
- 79% of Ontarians say that home ownership is important to them
- 80% of Ontarians say that owning a home gives them a sense of pride
- Ontarians ranked long-term investment value (29%), affordability/availability of homes (26%) and desire to own a home of my own (26%) as their top three reasons for a home purchase
These are some of the findings of an Ipsos Reid poll conducted between May 20th to 23rd, 2014 on behalf of the Ontario Real Estate Association (OREA). For this survey, a sample of 1,080 Ontarians from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/- 3.4 percentage points had all Ontarian adults been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.