To sell or not to sell? Hot housing market makes it a tough decision for many Canadians: CIBC Poll
A new poll by CIBC finds that while two in five Canadian homeowners with plans to sell their home are inclined to cash in and reap a profit amid continued strong housing prices, as many as two-thirds (62 per cent) are reluctant to sell due to the high price tag of buying another home.
“In today’s market, homeowners are facing a conundrum as to whether to buy, sell or stay put,” says David Nicholson, Vice-President, CIBC Imperial Service. “Buying or selling your home is one of the biggest decisions you’ll make. That’s why it’s important to make the decision for the right personal and financial reasons and see past the noise in the marketplace. Evaluating the pros and cons as part of an overall financial plan can help you decide what’s best for you.”
Key poll findings:
- 41 per cent of Canadian homeowners with plans to sell say they are more inclined to cash in and ‘sell to reap a profit.’
- 62 per cent planning to sell say high price tag of buying another house is making them ‘reluctant to sell’ their current home.
- 54 per cent of all Canadians surveyed expect housing prices will continue to rise, and 40 per cent think housing prices will drop in the next five years.
- 73 per cent of homeowners will one day sell their home, including 25 per cent who plan to sell within the next five years.
- Nearly half (48 per cent) of homeowners, who are planning to sell, are concerned that government tax and policy changes will lower housing prices, and 28 per cent think that renting is a ‘better option’ given current house prices.
The poll also finds that as many as two-thirds (67 per cent) of baby boomers (aged 55+) plan to sell their homes with the top reason being to downsize to a smaller home, condo or nursing/retirement home (63 per cent). Financially, boomers say they’re motivated to sell to boost their retirement savings or take advantage of high home prices, yet the high cost of buying again is also making them reluctant to sell their current home.
“Your home is where your heart is, but it’s also likely your biggest financial asset, so there is a lot to consider as you enter or near retirement that can affect your decision to sell or not,” says Mr. Nicholson. “It’s important to determine what income you’ll need in retirement to live the life you want and prepare for the unexpected.”
For some, the dream of retiring by the water can sometimes be eclipsed by the reality of needing to be closer to family or medical services, which may in turn come with a higher price tag in today’s market, he adds.
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