Sixty-four per cent of survey respondents in the Greater Toronto Area (GTA) are concerned that the real estate bubble will burst.
The research surveyed 800 Ontarians who said they bought or sold in the past two years or are considering buying or selling real estate within the next two years.
The survey revealed that 70 per cent of young people (ages 18-34) are anxious about not being properly informed about the buying or selling process. Other top concerns are centred on affordability:
- 84 per cent worry that they won’t be able to afford the home they would like to buy.
- 76 per cent report they are concerned about affording costs of home repairs and renovations.
- 60 per cent weren’t sure if they could afford monthly mortgage payments on the home they buy.
- 68 per cent are concerned about being outbid by others.
Ontarians aged 35-54, many of whom have already bought and sold their first homes, have fewer concerns than younger respondents. Their biggest concerns are very different from the other groups, RECO says.
- They are the most concerned with how long their home will sit on the market when they go to sell (57 per cent).
- 42 per cent are concerned about whether to buy their new home before selling their current home.
- This age group is the least concerned (52 per cent) that the real estate bubble will burst.
More than half (56 per cent) think that the process of buying and selling a home has gotten more complicated over the last five years, while 70 per cent think the financial risks have increased. Ninety per cent say that technologies such as online searches, documents and payments have changed the real estate market.
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