There really is no place like home

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Financial considerations aside, there are many psychological benefits to home ownership

So far, this has been an interesting year in real estate. In the face of changing parameters, owning a home is still the Canadian dream for most people.

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Financially, a house or condominium is a tangible asset, rather than figures on paper.

You can touch it, see it, and take care of your investment over time. Homeowners also earn equity, which gives them financial options. Despite the ups and downs of real estate cycles, just look at the return-on-investment it has brought over the decades!

In January, Valour Group, District REIT and Pro Fund Mortgages reported the results of a survey that showed Canadians are strongly engaged in real estate investing (https://bit.ly/3AOkvLa). In fact, 87 per cent of survey participants reported that they feel more comfortable investing in real estate than in publicly traded stocks.

In April of this year, the results of the 30^th annual RBC Home Ownership Poll showed that 60 per cent of Canadians under the age of 65 look at homeownership as a good investment (https://bit.ly/3MvZ986).

This statistic is up from 53 per cent in 2023. The poll mentions that inflation was compromising the ability of half the survey respondents to save for a down payment, but with inflation down now, that is changing.

It was more good news in August, as the Conference Board of Canada shared the results of its index of national consumer confidence (https://stats.crea.ca/en-CA/stats/2k7dZil1MPa7B2vbqlNKlH/).

Opinions on making major purchases such as a home remained at restrained levels, but that had improved over the previous few months.

The percentage of people expressing optimism or uncertainty was much higher, and the percentage of those believing it was a bad time to purchase a home was lower.

Financial considerations aside, there are many psychological benefits to home ownership. There is pride of ownership, for example, that cannot be replicated by renting.

Whether a purchaser chooses to live in a low-rise community or a condominium, that person enjoys a sense of belonging. Owning brings with it a sense of permanency that many call “putting down roots.”

Recent surveys also show that most homeowners consider comfort and safety in their homes and communities extremely important. In other words, a family’s surroundings are considered as much a part of “home” as their house or condo.

That is why so many residential developers spend time and effort ensuring their homes and condos are situated in areas where people want to live.

Empty-nesters who have accumulated “stuff” for decades often decide to sell their longtime family home and buy a condo suite or more compact home.

When they buy early from designs, they can make the most of their waiting time to make the transition psychologically, as well as physically.

As challenging as real estate prices have become, we are hearing a shift in the conversations of first-time buyers today.

They are realizing the same thing we all knew when we purchased homes decades ago – that to own a home or condo, they will have to forego some of the luxuries they may take for granted.

For financial and psychological reasons, they want to pursue the Canadian dream.

Barbara Lawlor is CEO at Baker Real Estate Inc. Keep current with The Baker
Blog at blog.baker@realestate.com.