Canada’s housing market is showing clear signs of shifting in favour of buyers, thanks to declining interest rates, growing housing inventory, and softening home prices. Yet, despite these improved conditions, many potential first-time buyers are choosing to stay on the sidelines, according to a new report from Royal LePage.
The report, based on a survey of 2,500 Canadians, found that while 13 per cent are actively trying to purchase their first home within the next two years, a striking 82 per cent plan to wait at least another year before making a move.
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Some buyers are further along in the process than others. More than half (51 per cent) are currently researching affordable neighbourhoods, 49 per cent are browsing online listings, 19 per cent are attending in-person viewings, and another 19 per cent have already connected with a real estate agent.
“Interest rates are trending down and prices have either stabilized or declined in many markets — especially expensive ones like Toronto and Vancouver — creating a more favourable environment for first-time buyers,” said Phil Soper, CEO of Royal LePage. “But buying a home remains a major financial decision, and many want to proceed with greater certainty.”
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Mixed Signals in Market Activity
In a separate survey of real estate agents, Royal LePage found that only 36 per cent reported an increase in activity among first-time buyers this year, while 25 per cent said they had seen no change at all.
Soper said that ongoing economic uncertainty — particularly surrounding Canada’s trade relationship with the U.S. — is a key factor causing hesitation. Others are holding out in hopes of better deals, especially if further Bank of Canada rate cuts are on the horizon.
“For those not in a rush, many are taking a cautious, methodical approach — saving more and planning carefully before entering the market,” he said.
Detached Homes Still the Dream
Despite affordability constraints, 49 per cent of aspiring first-time buyers are aiming to purchase a detached home, compared to 26 per cent who are considering a condo or apartment.
“The dream of owning a detached house often clashes with financial reality,” said Soper. “While many buyers aim high, the market often leads them to more modest options.”
According to Royal LePage agents, 55 per cent of first-time buyers have a target budget between $500,000 and $750,000, while 19 per cent are aiming for a home priced between $300,000 and $500,000.
Family Support Still Key for Many Buyers
Even with improving affordability, many buyers are still depending on help from family to get into the market. The report found that 41 per cent of first-time buyers are expecting some form of financial support. Of those:
- 29% expect a gift or lump sum that doesn’t require repayment
- 28% plan to have a family member or friend co-sign their mortgage
- 27% are seeking loans from family and friends that they intend to repay
- 26% anticipate receiving help with their monthly mortgage payments
“Family support continues to play a crucial role in helping first-time buyers bridge the gap,” Soper said. “For many, that extra financial push is what turns the dream of homeownership into a reality.”
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