Will inheritance drive the housing market?Written by Grainne Burns
The transfer of inheritance to baby boomers over the next 20 years is expected to boost the market
A big pot of inheritance cash will help a pool of buyers use capital to alter their residence, downsize and purchase recreational property.
With over $1 trillion in inheritance expected to be pumped into the market, Sotheby’s International Realty Canada expect baby boomers to use this cash to invest in real estate.
According to their new Housing and Economic Outlook, confidence in the economy and housing market is strong, primarily thanks to low-interest rates and a buoyant U.S. market.
"The current economic climate in Canada sees metropolitan real estate benefiting from a weak dollar and recovering U.S. economy,” says Ross McCredie, President and CEO. Combined with demographic trends that predict demand for housing and a lack of inventory in most urban centres, the Canadian real estate market will see accelerated growth in the months ahead."
The report says that healthy immigration levels continue to contribute to strong urban housing markets, with the strongest impact felt in Toronto and Montréal, followed by Vancouver and Calgary.
However, they warn that Montréal’s spring housing market will be closely tied to the outcome of the provincial election on April 7, with sales momentum slowing until an electoral decision is reached.