Most people in Toronto hopeful real estate market will bounce back despite declining trends

Despite the challenges of steep interest rate hikes, rising inflation, economic uncertainty, and significant housing affordability concerns, most Canadians continue to be confident in the real estate market, a new study shows. 

Although declining trends continue well into the new year, the demand for housing across every generation remains high, according to a new generational trends report by Mustel Group and Sotheby's International Realty Canada. 

The report compares the confidence levels of Baby Boomers, Generation X, Millennials, and Generation Z adults as it relates to current housing market trends. The data is based on a survey of 2,000 Canadians ages 18-77 in the Vancouver, Calgary, Toronto, and Montreal Census Metropolitan Areas. 

According to the report, consumer confidence in the short-term and long-term financial performance of Toronto's real estate market remains upbeat, with the majority of respondents more willing to engage with the market than they were prior to January 2020. 

Thirty-six per cent of those in Toronto between the ages of 18-77 report that they are now more likely to purchase a home in the next five years compared to their intentions to do so pre-lockdowns.

A notable 31 per cent of Toronto primary residence owners ages 18-77 also said that they are now more likely to sell their homes in the next five years than in January 2020, including 12 per cent who are much more likely to sell. 

Looking at Canada as a whole, nearly half (49 per cent) of respondents ages 18-77 said they believe that a residential real estate purchase will perform the same or better than their other financial investments in the next year. 

A whopping 60 per cent of respondents said they believe it will perform the same or better than their financial investments in the next 10 years.

The report reinforces the notion that "confidence in the country's real estate market remains resilient despite recent shifts in market conditions," said Josh O'Neill, General Manager of Mustel Group. 

In Toronto, 34 per cent of Millennials said they are more likely to buy a home in the next five years than January 2020, while 47 per cent of Generation Z adults said they are now more likely to buy a home in the next five years. 

The report states that "confidence in Canada's largest real estate market remains upbeat in both the short- and long-term, with a significant percentage of Toronto residents even more primed to engage in a real estate transaction."