According to the BMO Fall Home-Buying Report, conducted by Pollara between Sept. 10 and 15, 43 per cent of prospective buyers now expect to increase their housing budgets 21 per cent compared to what they intended to spend when they started their searches. This represents an average increase of $83,556. Of 1,005 adult Canadians surveyed, 86 per cent indicated that housing prices have increased since they started house-hunting.

“Housing prices in Canada have risen 18 per cent over the past four years,” says Martin Nel, vice president of Personal Banking Products at BMO. “As prices rise, house-hunters need to ensure their savings are keeping pace, especially first time buyers who don’t have the leverage of a current house in the market.”

The report, which sampled Canadians who are likely to purchase a new home within the next five years, found that 55 per cent of potential home-buyers have had to reconsider their housing options for a variety of reasons, including cost; availability and inventory levels; and concerns surrounding the condominium market (76 per cent fear the market is overdeveloped or that condominiums do not retain value in comparison with other housing types).

According to BMO, consumer preferences for certain housing types are shifting away from condominiums while townhouses and semi-detached houses are growing in popularity. In fact, eight out of 10 house-hunters would opt for an affordable detached, semi-detached or townhouse over a condo.