Mikaila Rhodes Victoria Realtor®

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Largest Cohort of Millennials Changing Canadian Real Estate, Despite Constraints of Affordability and Mortgage Regulation

National survey shows while the peak millennial dream to own property is very strong, challenges to homeownership vary across the country

TORONTO, August 17, 2017 – According to the Royal LePage Peak Millennial Survey released today, high home values in Canada’s largest urban markets and job uncertainty in other regions mean new strategies and different priorities for ‘peak millennials,[1] a term coined to describe the largest cohort of the millennial demographic and the impact of their potential purchasing power[2].


The article above provides insight into the Peak Millennial demographic, below are some interesting statistics and take aways:


-With peak millennials as a group now reaching their late 20s, the number of people aged 25 to 30 is projected to increase 17 per cent in 2021 compared to 2016.[4]


-The cross-Canada survey conducted by Leger found that 87 per cent of Canadians aged 25 to 30 believe homeownership is a good investment. Yet, while 69 per cent hope to own a home in the next five years, 57 per cent of those surveyed believe they will be able to afford one.


-Thirty-five per cent of peak millennials surveyed already own a home, while another 50 per cent are renting and a further 14 per cent are living with their parents.

 

-When looking to purchase a property, 75 per cent of peak millennials surveyed would look to use their personal savings for a down payment, with 37 per cent seeking out alternative means of funding as well, like financial support from their families (25 per cent).

 

-Though 61 per cent of peak millennial respondents across Canada would prefer to buy a detached home, only 36 per cent believe that they will realistically be able to find a property within this market segment.

 

-64 per cent of peak millennials currently believe that homes in their area are unaffordable, with a significant proportion of respondents in both British Columbia (83 per cent) and Ontario (72 per cent) asserting that prices are simply too high.

 

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Victoria Real Estate Market Remains Hot Into the Summer Months

Aug 1, 2017 - "The activity level in the Victoria real estate market continues to be brisk, though we always expect a slowdown in the summer months," says 2017 Victoria Real Estate Board President Ara Balabanian. "This July, we saw a strong focus on the lower priced end of the market, with condos and townhomes and single family homes listed for under $700,000 in high demand. Many of those properties saw multiple offer situations."

A total of 790 properties sold in the Victoria Real Estate Board region this July, 18.7 per cent fewer than the 972 properties sold in July last year. 

"The ten year average for sales in July is just over 700 properties," adds President Balabanian. "So the numbers from last month illustrate an ongoing demand for homes in Victoria. We anticipated at the beginning of the year that we would see another busy market - without the record breaking numbers we saw in 2016 - and we are seeing exactly that. The surprise has been the low inventory levels, with listings for sale consistently below 2,000. The good news is that compared to the start of the year we have 26.7 per cent more listings on the market, but that supply is still lower than we expected, which puts pressure on pricing and availability."

There were 1,921 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of July 2017, an increase of 0.3 per cent compared to the month of June, but 11.1 per cent fewer than the 2,161 active listings for sale at the end of July 2016. 

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in July 2016 was $737,800. The benchmark value for the same home in July 2017 has increased by 13.1 per cent to $834,200. 

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For August I am giving away TWO TICKETS to the Great Canadian Beer Festival on SATURDAY, September 9th from 12:00pm-5:00pm!

 

This is one of my favourite events as Summer comes to an end, with over 240 craft beers and ciders to try from 66 breweries and 2 cideries, tons of local food trucks and musicians! 

 

LIKE, SHARE & POST (for a bonus entry)

 

*Contest Rules*

 

1. “LIKE” my Facebook page Mikaila Rhodes - Real Estate Professional in Victoria
2. “SHARE” and “LIKE” this post 
3. OPTIONAL for a bonus entry: “TAG” a friend you would like to take with you!

 

Good luck and WINNER will be announced August 18th!

 

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