Some odd results from the latest BMO Housing Confidence Report released today. Nearly half of Canadian homeowners (48%) intend to buy a property in the next 5 years – mostly unchanged from fall 2012 – signalling a high level of confidence in Canada’s housing market is continuing into 2013.
Where it gets weird is the regional breakdown. Intent to buy has increased in markets where most of the bearish reports having been coming from:
- Vancouver increased 5% to 58%
- Greater Toronto Area and Montreal increased 2% to 59%
Meanwhile in Calgary, those with plans to buy have decreased by 13% since the fall to 39%.
BMO economist Mr. Guatieri notes: “In Vancouver, buyers seem eager to take advantage of the modest decline in home prices over the past year, while, in Calgary, strong price gains appear to have put some potential buyers on the fence.”
Through 3 weeks in May, single family home prices are at all-time highs for the month.
Overall Calgary sales are up nearly 4% y/y, but that’s because of activity in the condo market which hasn’t seen the same price recovery and growth as the SFH segment since it last peaked in 2007.