Younger Canadians are expected to jump into the real estate market this year as they hope to take advantage of low interest rates and what they consider "good prices," The Royal Bank suggested that 15 per cent of Canadians between the ages of 18 and 24 were very likely to buy, almost double from eight per cent in 2009. With a tough job market with uncertain job security, young Canadians had been turning to renting and trying to save their money.
Thirty-one per cent of 18 to 24-year-olds surveyed in the online poll said they would buy a house because of a new job. The survey also found 22 per cent in that young age group wanted to buy a home because they considered interest rates were good.
CIBC World Markets senior economist Benjamin Tal said more young people are getting into the real estate market, taking advantage of low interest rates, lower down payments and more years to pay off their mortgages. The first half of 2010 has been very active as these young Canadians feel this situation may be changing soon. It is expected that the government will make it more difficult to get mortgages with new lending restrictions and testing. Interest rates will also be on the rise and the introduction of the HST will have people rushing to buy before July.
The RBC survey also suggested that overall attitudes are changing as more Canadians return to shopping for homes as the economy recovers, even though it's considered a seller's market. The study also found that 91 per cent of Canadian homeowners believe a home is a good investment, the highest level in 12 years.
For more information on mortgage lending and to get pre-approved, call Scott Kirkwood of RBC - 289-259-5724 to chat about your options. Tell him Sean sent you!