The latest study by TD Canada Trust revealed that around 13 per cent of buyers in Toronto and Vancouver purchased homes in a rush for fear of missing out on good picks before these grow too expensive for their budgets, underscoring a disturbing trend in Canada’s most active housing markets.
Meanwhile, fully one-fifth of the survey respondents indicated a degree of buyer’s remorse, saying that they might have dived headlong into the frenzy without taking stock of what they could actually afford.
The survey proponents strongly suggested a calmer and more measured approach on the consumers’ part, as panic buying might artificially inflate demand and prices, thus further placing homes out of the average household’s reach.
“It's understandable that house hunters don't want to miss out on buying their dream home, but that shouldn't come at a cost they can't really afford,” TD Canada Trust associate vice president Marc Kulak said in an interview with HuffPost Business Canada.
The price index certainly isn’t helping, as it rose sharply last month to 11.6 per cent in Toronto and 23.3 per cent in Vancouver. These accompanied a growth in March sales, with Toronto posting a 16.2 per cent increase and Vancouver a 27.4 rise.
Kulak advised prospective buyers to realistically assess their finances before they put down 20 per cent, which would help them save on mortgage insurance premiums.
“With careful planning and a good savings plan for a down payment, it is possible to get a property that works for them without ending up with buyers' remorse after they've closed the deal,” Kulak explained.
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Courtesy of: http://www.canadianrealestatemagazine.ca/news/fear-of-missing-out-provokes-panic-buying--study-206194.aspx
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