Lower interest rates and housing prices have many prospective homebuyers wondering if now is the right time to buy, but most Canadians are divided on the market and whether to act, according to Royal Bank of Canada’s latest homeownership poll. The poll, which interviewed 1,753 Canadians, said 64 per cent believe the perfect time to buy a home doesn’t exist. They were also at odds about their view of the current housing market , with 27 per cent saying it’s a buyer’s market and 36 per cent saying it’s a seller’s market. “Today, Canadians are being asked to make one of the largest financial decisions of their lives with a lot of unknowns, and it’s normal to feel overwhelmed by it,” Janet Boyle, senior vice-president of home equity finance at RBC, said in a press release . “ Rising costs and shifting economic conditions have made every step of the homebuying journey feel higher-stakes, and the pressure of whether to act is weighing on Canadians.” Almost 60 per cent of Canadians agreed home prices will rise this year, while half also presumed the same about interest rates. However, 53 per cent of those who intend to purchase a home within two years believe they only have a small window of time to take advantage of lower prices. “Many of my clients want to buy a home, but economic uncertainty is making it harder to feel confident about timing,” Brad Evjen, a senior mortgage specialist at RBC, said in the release. Nearly two-thirds said economic uncertainty was their biggest challenge to buying a home, while 76 per cent said rising costs have made it harder for them to save money and 56 per cent said it has caused them to save less for a home. Almost four of five Canadians also believe homeownership requires more sacrifices today than for previous generations and 74 per cent said buyers experience some level of financial shock when they purchase their first home. Top financial trade-offs include delaying major purchases, needing a side hustle or second job, completely overhauling spending and saving habits, postponing or scaling back vacations and redirecting retirement savings to a home purchase. “While the barriers to homeownership have always existed, how they look has shifted,” Boyle said. “ What hasn’t changed is the importance of knowing what’s right for you.” Most Canadians don’t seem to know what that is, however, with only 28 per cent feeling confident about making homebuying decisions in today’s market. Despite the low confidence, 46 per cent of those who intend to purchase within two years believe current conditions are giving first-time homebuyers a chance to enter the market, while 58 per cent said lower prices will finally allow them to buy a home and 54 per cent said the same thing about interest rates. Sign up here to get Posthaste delivered straight to your inbox. It’s been a challenging year for Tesla Inc. shareholders, losing 14 per cent while watching Elon Musk’s SpaceX complete the biggest initial public offering ever and immediately become the most valuable entity in the newly minted trillionaire’s collection. But Space Exploration Technologies Corp.’s IPO last week is also providing hope for Tesla investors, who are betting that Musk will ultimately engineer a merger of his two businesses. And should SpaceX’s stock continue its recent slump, some analysts predict it will only make Tesla shareholders more agreeable to the idea. The combination would create a massive technology conglomerate that could eventually join Nvidia Corp., Alphabet Inc. and Apple Inc. as one of the world’s biggest companies. That optimism from Wall Street may help explain why Tesla shares have held fairly firm since the IPO and climbed back over US$400 on Monday, even as SpaceX sees the post-IPO euphoria evaporating. — Bloomberg Today’s Data: Bank of Canada summary of deliberations, 10-year bond auction; United States current account deficit for the first quarter, new home sales for May, two-year floating rate note auction and five-year note auction Today’s earnings: NovaGold Resources Inc., Micron Technology Inc., Jefferies Financial Group Inc. Canada could be ‘sideswiped’ if global imbalances continue to widen, Bank of Canada’s Tiff Macklem warns Ontario startup aims to solve what may be the biggest threat to globally secure communication Ballard buys U.K.-based hydrogen producer for $515 million in strategic pivot Canadian trips to the U.S. climb for the first time in Trump’s second term Instead of focusing on important economic matters such as taxes, Canada’s new artificial intelligence strategy is devoted to protecting Canadians from AI, Indigenous data governance (whatever that is), diversity, equity and inclusion in AI development and online safety for children. Some of these may be worthy concerns, but a government that leads with control rather than competitiveness has already revealed its priorities, writes Kim Moody. Read more. Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors. Sign up here. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).McLister on mortgages Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily. Financial Post on YouTube Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more. Today’s Posthaste was written by Noella Ovid with additional reporting from Financial Post staff and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com . Posthaste: The surprising city that’s bucking Canada’s housing affordability trendHST rebate helps drive Toronto new home sales in May, report says Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters here
Posthaste: Is now the right time to buy a home? Canadians are divided
