Many Canadians believe low interest rates making homes less affordable

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Published August 25, 2021 at 11:31 am

Many Canadians believe low interest rates are actually making homes more expensive.

According to a recent survey from Zoocasa, 80.5 per cent of respondents believe low interest rates are driving home prices up, compared to 32.8 per cent of people who felt this way in February.

Additionally, 47 per cent of respondents believe low mortgage rates are improving affordability for homebuyers—a decrease of 3.8 per cent—while 34.4 per cent believe they’re making houses less affordable—an increase of 12 per cent compared to February.

When asked about what was impeding respondents from buying a home, 78 per cent said it was a lack of affordability, and 70 per cent said it was the belief that the market was heavily in favour of sellers, and the reluctance to get involved in a bidding war.

Further, as more workplaces begin to open up, and more people return to the office, home office space has become less desirable for those seeking to purchase a home.

Based on the findings, 43 per cent of respondents listed office space as a desirable feature of a home, a decrease of 16 per cent post-lockdown.

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