Survey Says Alberta homebuyers' sentiments rebound to '07 levels

By Mario Toneguzzi, Calgary Herald March 4, 2009

Homebuying intentions in Alberta have rebounded and are back to 2007 levels, according to the 16th Annual RBC Homeownership Survey which was released today.

The survey found that 35 per cent of Albertans were likely to purchase a home within the next two years, well above the national average of 27 per cent and up from 29 per cent in 2008.

"Home purchase intentions in Alberta have not only shown big gains over last year, they also remain higher than any other region in the country," said Don Peard, vice-president, Mortgage Specialists, RBC. "More favourable mortgage rates and home prices may in part explain this increase, and Albertans still believe firmly in the long-term value of a home."

The survey, conducted by Ipsos Reid, found that a large majority (72 per cent) believe it is a buyer's market right now. Given current housing prices and economic conditions, most Albertans (57 per cent) believe it makes more sense to wait until next year to buy.

According to the survey, 86 per cent of those polled in Alberta said that buying a home is a good or very good investment - the largest percentage in Canada.

Among those who plan to purchase this year or next, 39 per cent said they will do so because housing prices look attractive. Seventeen per cent cited the need for a larger home, and another 16 per cent said they will purchase because their current home does not meet their needs.

Seventy-one per cent said they plan to purchase resale and most (63 per cent) will opt for a detached house.