More millennials are jumping into homeownership

More millennials are in the market to buy a home in the near future, according to a new study by RBC. The study showed that 50 per cent of millennials (aged 18 to 34) express a desire to buy homes in the near future. Overall, 32 per cent of Canadians would like to buy a home in the next two years, which is up from seven per cent from 2017, but millennials held the clear majority of this group.

The main motivators behind the boost in home purchase interest in being attributed to a resurgence in the economy and employment. Millennials are feeling less anxious about employment (36 oer cent this year versus 47 per cent last year), and have a declined uncertain feeling towards the economy this year (19 per cent compared to 28 per cent in 2017).

“Canadians continue to feel optimistic about getting into the housing market despite changes in government regulations. They’re taking a more informed journey to home ownership by starting with affordability,” according to Nicole Wells, vice president for Home Equity Financing, RBC.

According to the report, 84 per cent of millennials feel that purchasing a home is a “very good or good investment”, which is a trend upward from the 79 per cent of millennials who felt that way last year. There is some indication that a need for increased down payments is influencing millennial home buying behaviour, but that may explain why the “bank of mom and dad” is coming into play more.

35% of Canadians indicated in the poll that they had received, or would be receiving, financial assistance from their families for their down payments. Meanwhile, 36% are planning to do it on their own with a dedicated savings account. [Mortgage Broker News]

If millennials can make it work financially, getting into the real estate game is definitely a good investment. From the buyer’s perspective, a condo is a good investment right now. The market is still fairly saturated with a supply of new condos, so price points have been much lower than historical averages. Now is a great time to buy. If you have any questions about buying real estate in Calgary, please contact us.

 

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