High price of buying another house keeping many B.C. homeowners from selling current homes

Photo: Rob Kruyt

More than half (52%) of British Columbian homeowners say they are reluctant to sell their current homes because of the high cost of buying a new residence, according to a new CIBC poll.

Forty seven per cent of all homeowners in B.C. say that when they do sell, they are planning to cash in and sell in order to reap a profit. Nationwide, this figure dips to 41%.

“In today’s market, homeowners are facing a conundrum as to whether to buy, sell or stay put,” said CIBC vice-president David Nicholson. “Buying or selling your home is one of the biggest decisions you will make.”

The top three reasons British Columbians give for selling their homes are to cash out before home prices fall (24%), to invest in another home (23%) and to fund their retirements (19%).

Twenty four per cent of B.C. homeowners plan to sell within the next five year, and 28% say they expect to sell in the next 5-10 years. More than a quarter of those surveyed say they never plan to sell their homes.

The poll found 56% of British Columbians (54% of Canadians) expect house prices to continue to rise in the next five years, while 41% (40% of Canadians) say they expect housing prices to fall.

Four in 10 homeowners in the province who are planning to sell worry that government tax and policy changes, including new federal mortgage rules and the foreign-buyer tax, will lead to a decrease in house prices. Twenty two per cent of those polled said they thing renting is a better option than owning, due to high house prices.

The survey found that 60% of British Columbians (62% of Canadians) own their own homes, while 32% (31% nationally) rent. Eight per cent (7% of Canadians) live with their parents, including 19% of those aged 18-34.