Many homeowners reluctant to sell despite hot housing marketBy The IJ Staff | April 11 2017 11:30AM
Two in five Canadian homeowners with plans to sell their home are inclined to sell to reap a profit in today’s hot housing market. However, 62 per cent are reluctant to sell due to the high cost of buying another home, according to a CIBC poll released April 10.
"In today's market, homeowners are facing a conundrum as to whether to buy, sell or stay put," said 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."
The poll also found that 39 per cent of millennials own homes while 61 per cent either rent or live with their parents/family. Of millennials owning homes, 81 per cent plan to sell, citing these reasons:
- 63 per cent say mortgage and housing costs are making them cash poor.
- 57 per cent worry that rising interest rates will make it harder for them to meet their mortgage payments.
- 36 per cent feel that renting is the 'better option.'
However, as many as two-in-five millennial homeowners with plans to sell have plans to upsize to a larger home.