More Canadians willing to enter bidding war to buy a home, with Toronto and Vancouver the hottest markets, says BMO survey
Posted on Mar 12, 2014 in Mortgage Market Updates and NewsCanadian Press
More Canadians are willing to enter a bidding war and fight it out to secure a property, according to a home buying report released Wednesday by Bank of Montreal.
It says 34% of Canadians surveyed are willing to enter a bidding war when it’s time to buy a home, an increase of six points, or 21%, from a year ago.
The survey, conducted by Pollara for BMO, suggests the appetite for competitive bids among major cities is the highest in Toronto, at 44%, and Vancouver, at 41%.
On a provincial basis, prospective buyers in the Prairies and British Columbia are the most willing to compete on the price of a home, with a reading of 38% in both regions.
The BMO survey also reports current homeowners say they visited an average of 9.5 homes before buying. While 49% said they were successful on their first bid, the figure drops to 42% among those who bought in the past five years — including 32% in Vancouver and 24% in Toronto.
The survey results are based on random online interviews with 2,007 Canadians between Jan. 24 and Feb. 3. Of those, 1,051 were prospective homebuyers and the remainder were current homeowners.
The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.