Young Canadians turn to home ownership
43% are looking to buy within next two years: study
once Joseph Silot and Amy Cruz were pre-approved for a mortgage, it took them about a month or so to find a home to buy.
The young Calgarians viewed about 30 houses and condos before making their decision to acquire a condo in the northwest neighbourhood of Sunnyside.
“Numerous factors contributed to our choice to purchase a home,” said the 27-year-old Silot. “From a general standpoint, the combination of the current market and interest rates allowed us to really consider the idea. Alongside the fact that both of us have steady jobs and can handle a mortgage for a place we want in terms of location, size, lifestyle and access to amenities, it proved to be very tempting.
“The prices in the real estate market have lowered since recent years and properties are far more attainable than before.”
Silot and Cruz are an example of how more young Canadians are looking at the residential real estate market these days.
The18thAnnualRBCHomeownership Study, released today, found that younger Canadians are more likely to purchase a home than other age groups, as 43 per cent (aged 18-34) are looking to buy in the next two years, compared with the national average of 29 per cent. Older Canadians are much less likely to buy in the next two years, including those aged 35-54 (29 per cent) and over-55 (17 per cent).
But the study also showed that more than half of young Canadians (55 per cent) believe that it makes sense to delay a home purchase until next year, 10 points higher than the national average, and almost half (46 per cent) of younger homeowners admit that their mortgage is using up too much of their income.
The 29-year-old Cruz said the Calgary real estate market is “incredibly diverse.” She said the market had slowed over the winter months, allowing her and Silot to find something they loved within their price range. “Joe and I had been saving for a few years and it finally seemed attainable given the current market,” she said.
“There are a lot of choices and selection, depending on what area and price you are looking for. You have to be willing to commit to the process of educating yourself and make sure to look at a lot of places before you make a decision. It might take longer than you expected, but once you find something you love it’s worth it.”
According to the poll, younger Canadians (aged 18-34) are most concerned about having a good down payment (23 per cent) and rising real estate prices (23 per cent) when looking to buy a home. Canadians aged 35-54 are most concerned with rising prices, as 24 per cent are worried about mortgage rates and 25 per cent about home prices increasing. Canadians over the age of 55 list increasing home prices (36 per cent) as their biggest worry when deciding to purchase a home.
While 43 per cent of younger Canadians (aged 18-34) are paying off their mortgages faster than expected, twothirds (66 per cent) say it is larger than they would like it to be.
What types of homes are younger Canadians (ages 18-34) looking to buy? Detached house (59 per cent); condo/loft (15 per cent); semi-detached house (10 per cent); and townhouse (10 per cent).