The number of Canadians who now expect housing prices to fall has more than doubled since last spring, a survey by a mortgage brokers group has found.
The figure now stands at 35 per cent, the Canadian Association of Accredited Mortgage Professionals (CAAMP) said Tuesday in releasing its annual fall survey on consumer perceptions. This is up from 15 per cent in the spring survey, the association said.
“Almost one-half of those surveyed gave a neutral answer while the number who thought prices would go up fell from 40 per cent to 20 per cent,” it said in a news release. “Westerners, who have endured particularly hot housing markets, are most negative, and in British Columbia, 48 per cent of those surveyed said they expect prices to fall, far above the national average.”
More than 2,000 Canadians were surveyed in the CAAMP on-line poll, which was conducted for the association by Maritz Research in mid-October.
The Canadian Real Estate Association said last week that nationally, the average price of a resale home in October fell the most, percentage-wise, since August, 1982, sinking 10 per cent from the year before to $281,133. It was the fifth consecutive month with year-over-year price declines.
The CAAMP survey also found that most Canadians are unaware of the federal government's decision, which took effect last month, to stop guaranteeing mortgage insurance on mortgages with 40-year amortization periods or down payments of less than 5 per cent of the property value, or those granted to borrowers with low credit scores.
Only 36 per cent of the respondents were aware of the first two changes and just 17 per cent of the third change, the group said.
However, 60 per cent said they strongly or somewhat supported the government's action.
© The Globe and Mail
