TORONTO - A survey of real estate brokers and agents says Canadian homebuyers are still nervous about the stability of the economy, but few believe home prices are likely to decline again.
The Royal LePage adviser survey found 38 per cent of agents and brokers said economic instability ranked as the number one fear for home owners over the past three months.
Twenty-three per cent of brokers said home buyers fear they may not be able to sell existing homes at the price they are hoping for, while 12 per cent said buyers are hesitant because they think prices haven't hit rock bottom yet.
Another 20 per cent of agents and brokers said they are not hearing any concerns from buyers.
The survey also found an increasing number of Canadians were buying homes as investment properties with more planning to renovate after they made a purchase.
The online survey questioned 1,225 Royal LePage agents and brokers in November.
"Given the volatility in the real estate markets over the past 18 months, it is not surprising that the state of the economy continues to weigh on the minds of Canadians as they consider buying a home," said Phil Soper, president and chief executive, Royal LePage.
"Our survey shows that consumer confidence is edging towards normal levels. Canadians clearly believe that the worst of the recession is behind them and that the real estate market is on the path to sustainable recovery."