Based on home-buying intentions, 2005 should prove to be another banner year for Canada’s housing markets, according to an annual survey by RBC Royal Bank. The survey, which was released today, concludes the group most likely to lead the charge to the moving van will be 25 to 34 years of age (46%).

Three in 10 Canadians (29%) — up three points from 2004 and the highest level since 1997 — say they intend to purchase a home or another house over the next two years; 13% say they are “very likely” to do so. Another positive indicator is that 10% (up 2% from last year) of those who plan to buy within the next two years, expect to buy a home in the next six months. Of those who are likely to purchase within the next two years, 41% are currently renters.

“The move towards home ownership continues for Canadians,” said Clayton Van Esch, senior manager, Mortgages, RBC Royal Bank. “Low mortgage rates, flexible payment plans, and continued affordability are all part of the reason why so many people are poised to purchase over the next two years.”

The RBC survey notes the largest increase among those people most likely to purchase homes came from the youngest sector of the economy with intentions among Canadians aged 18 to 24 at 36%, up nine points from 27% in 2004. However, older Canadians (age 55 and over) are also making their mark on housing markets with purchase intentions up three percent. Now, at 15%, this is the highest level since 1997.

While intent to purchase a home within the next two years is greatest at 17% in Alberta, indicating they are “very likely” to purchase a home within the next two years, the greatest increase in intent is in Ontario where 14% reported themselves “very likely” to buy a home, up three points.

Quebec has the fewest potential homebuyers with those “very likely” to buy a house or another home in two years at 11%. In other areas of the country, the number of British Columbians most likely to purchase remains stable at 16%; and in Saskatchewan/Manitoba, 12% are “very likely” (up two points from 2004). Buying intensity in Atlantic Canada remains flat with 8% “very likely” (9% in 2004).

The housing industry is a key economic driver in Canada with existing homes, home building, buying, renovation and mortgage expenditures representing an estimated record $1.7 trillion in 2004. The sale of homes is an important economic indicator and consumer confidence barometer.

These are some of the findings of an RBC Financial Group poll conducted by Ipsos-Reid between January 18 and 24, 2005.