According to the results of the latest poll conducted by CIBC, nearly two-thirds (62%) of Canadian home owners are hesitant to sell their properties because of the prevailing climate of elevated home prices that would make it more difficult for them to get their next houses.

This fear cuts across the demographic spectrum, despite the survey finding that around two in five Canadian home owners (41%) are contemplating on making generous profits by selling their homes in current market conditions.

Among baby boomers (aged 55 and above), 67% plan to sell their current homes, and 63% plan to downsize to smaller domiciles, condo units, or retirement homes.

“Your home is where your heart is, but it’s also likely your biggest financial asset, so there is a lot to consider as you enter or near retirement that can affect your decision to sell or not,” CIBC Imperial Service vice president David Nicholson said. “It’s important to determine what income you’ll need in retirement to live the life you want and prepare for the unexpected.”

The same poll also found that as much as 81% of millennials (aged 18 to 34) who own homes right now are planning to sell. 63% said that mortgage and housing costs are financially burdensome, while 57% expressed fears that rising interest rates will make it harder for them to meet their mortgage payments.

Overall, 54% of the survey respondents indicated that they believe that home prices will grow further, with 40% expecting that prices will decline within the next 5 years.

Meanwhile, 48% of those planning to sell feared that prices might drop due to government interventions via taxes and policy changes, while 28% stated that renting remains the “better option” amid the feverish market conditions.

Resale Fears Abound Across Demographics by Ephraim Vecina | Canadian Real Estate Wealth