Genworth Canada recently took a survey entitled The First-Time Homeownership Study. The study focused on the buying strategies and ideas of people of the Millennial generation. Many believe that this generation is one of the most important and will shape the economy for the future. This group also forms the largest segment of first time buyers. 1,800 people were surveyed across Canada and the majority (77%) were millennials, aged 35 or less. One-fifth were born outside Canada with 62% of those having immigrated in the past 10 years.
While buying a home may come with a lot of stress and trepidation, the survey found that the first time buyers who had gone through the process were confident in the decision that they made.
As for motivation, 53% believed owning a home was a wise financial decision and they disliked renting or wanted to buy a home before prices increased further.
The average house price was $293,000 across Canada but regionally it varied. Toronto was the highest at $425,000 and the Atlantic provinces were the lowest at $185,000.
Almost 2/3 of the people surveyed had a down payment of less than 20% with the average being around 8 or 9%. The highest down payments were found in Toronto and Vancouver.
Toronto also showed a high level of ‘gifting’, where parents gift a lump sum to their child for a down payment. The trend seen is parents are taking out equity of their current homes, allowing their children to buy when it otherwise wasn’t possible.
62% of first time buyers purchased a house with a spouse or significant other, a whopping 35% bought a house on their own. Those in Atlantic Canada, Manitoba and Saskatchewan are more likely to live in detached homes, while those in Montreal, Toronto, Calgary and Vancouver are more likely to purchase a condo.
What is the number 1 consideration for a home? Price. Following close behind is a safe neighbourhood that’s also close to work. Size and style also are important factors as it the potential to renovate, resell, or rent out part of the home.
Regardless of what the results of the survey are, every buyer and their situation is unique. If you are looking for an experienced REALTOR® who is able to listen and understand your situation, then please contact me today.
Saskatoon real estate agent
Century 21 Fusion