Buy now or wait? Canadians do not see a perfect timing to enter the housing market

Most Canadians see the housing market as not providing an easy answer to the question of whether to buy now or wait, amid ongoing economic uncertainty, rising ownership costs, and varying expectations regarding interest rates in the coming period.

A new survey showed that 64% of Canadians believe it is impossible to know the perfect timing to buy a home with certainty, while 73% said that economic uncertainty makes the buying decision more difficult.

These results reflect the hesitation experienced by many potential buyers after years of sharp increases in interest rates, the continued high levels of home prices, as well as differing market conditions from one region to another within the country.

Although the decline in borrowing costs compared to the peak of monetary tightening has helped some buyers regain part of their purchasing power, owning a home still represents a significant burden on the budgets of many Canadian families.

The latest national reading of the housing affordability index indicates a relative improvement in the first quarter of 2026, as the percentage of income needed to cover ownership costs dropped to its best level in four years. This decline means that affordability has improved compared to previous periods.

However, this improvement does not seem sufficient to change the overall market mood, as gains in purchasing power have become weaker and less widespread across regions, while some markets still witness rising ownership costs.

Also, the decline in home prices has begun to lose momentum in some areas, while interest rates appear closer to stability rather than a new significant downward wave, limiting the chances of a broad decline in mortgage costs in the upcoming phase.

Nevertheless, some buyers still see the current market as a potential opportunity. Among Canadians planning to buy a home within the next two years, 45% said the current time is suitable for buying, compared to only 27% of the general Canadian population.

However, this optimism remains limited and cautious. Seventy-five percent of potential buyers said economic uncertainty makes them more conservative, while 72% considered it the biggest challenge facing the decision to buy a home.

The survey results show that ownership pressures are no longer linked only to price or interest rates but extend to lifestyle and daily financial decisions. Seventy-eight percent of Canadians said that owning a home today requires greater sacrifices than previous generations, while only 28% expressed confidence in making sound buying decisions in the current market.

The figures also indicate that many potential buyers link their market entry to price or interest rate declines. Fifty-eight percent said that falling home prices might help them buy their first or next home, while 54% saw a drop in interest rates as a decisive factor in entering the market.

At the same time, 53% of potential buyers believe there is a limited time window to benefit from falling prices before they rise again, reflecting a state of tension between the fear of buying at the wrong time and the fear of missing the opportunity.

These pressures are driving many Canadians to rearrange their financial priorities. Sixty-nine percent of potential buyers said they expect to postpone major purchases such as cars or renovations, while 62% said they might delay or reduce travel and vacation plans.

Sixty percent also indicated that they need a complete reorganization of spending and saving habits, while 53% said they might have to use part of their retirement savings to help buy a home.

These data reveal that the Canadian housing market remains stuck between limited improvements in affordability and continued weak confidence. Buyers face not only the question of price and interest rates but also the question of economic stability and the ability to bear long-term financial commitments in an environment that remains unstable.

Between those who believe waiting may bring a better opportunity and those who fear prices will rise again, the most difficult decision for many Canadians remains determining whether the current time is an opportunity to buy or a risk worth postponing.