With a buyers’ market prevailing in Canada’s real estate market, more than a quarter of Canadians say they intend to purchase a home within the next two years, the 16th Annual RBC Homeownership Survey has found.

Of more than 2,000 Canadians polled in early January, 65% believe it’s a buyers market right now. The survey found that 27% are planning to buy a home in the next two years, up four points from 23% in 2008 — the largest single year increase since 2001. Additionally, 48% indicated that it makes sense to buy a home now versus waiting until next year.

Younger Canadians are most likely to spark an upsurge in home sales, the survey found. In the under 35 group, 48% plan to buy, which is up sharply from 36% last year.

Renters also appear to be are tired of paying someone else’s mortgage payment, with 38% planning to become homeowners in the next two years.

“The current economic environment does not appear to have dampened Canadians’ overall confidence in the housing market,” said Karen Leggett, head of Home Equity Financing at RBC Royal Bank. “Canadians continue to have an overwhelming belief in the long-term value of a home and we’re seeing this in the buying intentions of many first time homebuyers this year.”

A hefty 83% of Canadians remain positive that homeownership is a good investment. That proportion is down slightly from 85% in 2008 and from the all time high of 90% in 2006, but it remains 10 points stronger than it was a decade ago.

Among those who intend to buy, three in ten say favourable housing price is a major reason driving their decision. In a marked change from last year, 54% of Canadians believe housing prices will be lower in 2009, up from 31% in 2008.

Similarly, 14% of Canadians believe their home has lost value in the last two years. Of these, more than half think it will take three to five years for their home to recover its value.

“Low mortgage rates and favourable housing prices are influencing home purchase intentions this year and may be the reason why more Canadians are poised to purchase over the next two years,” Leggett said.

The primary reason stated by homeowners who are not planning to purchase a home is that they are content with the home they have, at 60%. Another 8% cited job loss concerns and 6% attributed general concerns about the economy to their decision not to buy a home.

Across the country, residents of Alberta are most likely to buy a home in the next two years, at 35%, followed by Ontario residents, at 30%. Quebec is the province where the fewest residents intend to make a purchase at 22%.

IE