First-Time Buyers Delay Purchases Despite Improved Canadian Housing Market

A new study reveals that many prospective first-time buyers in Canada are still holding back from entering the housing market this year, even as conditions improve with lower interest rates, growing inventory, and softer prices.

Royal LePage’s latest first-time buyer poll, conducted by Burson, found that 13% of Canadian adults are aiming to purchase a property within the next two years. However, only a small fraction expect to buy within the next 12 months, while 82% said they are more likely to make their move between 12 and 24 months.

Phil Soper, president and CEO of Royal LePage, said buyers are looking for maximum certainty before committing to such a significant purchase.

“Rates are trending downward and prices have stabilized or even declined in some markets, offering long-awaited entry points for new homeowners, especially in expensive cities like Toronto and Vancouver,” Soper noted in Thursday’s release.

“Yet hesitation persists. For some, ongoing economic uncertainty — particularly regarding trade with the U.S. — is encouraging them to wait for clearer signals of stability.”

Others, he added, are deliberately holding off in hopes of finding better deals.

“With the possibility of further Bank of Canada rate cuts this year, those not in a rush are carefully building savings and preparing to step in when they feel the timing is right,” he said.

Last week, the Bank of Canada trimmed its benchmark rate by 25 basis points to 2.5%, ending three consecutive holds since March.

When asked about their stage in the buying process, about half of respondents said they are either researching affordable neighborhoods or browsing listings online. Fewer than 20% reported viewing homes in person or working with an agent.

To make ownership more attainable, 60% said they are searching in less expensive areas, 40% are considering smaller properties, and 39% are cutting discretionary spending.

Just over half of those surveyed said they do not expect any financial support for their purchase, while 41% anticipate receiving some form of assistance.