Canada has one of the highest rates of home ownership globally and has been outperforming the US for the last decade. Our low interest rates and strong employment have been able to help more Canadians achieve home ownership over the last few years.
According to the US News and World Report, we here in Canada have the Best Quality of Life Globally and have been voted as such for the last 4 years.
The population growth we have seen as well as our strong economy on a global level help to contribute to consumer confidence when entering the real estate market.
There are 3 main driving factors in the demand for homes:
Immigration over the last 10 years has contributed to 69% of our population growth and approximately 75% of the newcomers arrive with savings to buy a home.
Millennials are entering the marketplace and as children of the baby boomer generation they make up the largest group in North American history at over 10 Million. The majority want to buy homes and most are likely staying in their parents home saving up for their down payment to enter the market.
69% of millennials surveyed want to purchase a home in the next 5 years and 61% would consider relocating in order to buy. Many of the millennials in the Toronto area are likely looking at the Hamilton region as a solution to affordability and entering the market.
Baby Boomers have been a large driving force in the Canadian economy for years. According to Stats Canada there has been a 52% jump in retirement from 20 years ago and annual retirements are expected to reach 285,000 people/year over the next 7-8 years. According to a Royal Lepage survey 1.4 M of the boomers want to purchase a home and over half are interested in moving to something the same size or larger. Not necessarily the downsizing trend one might expect.
Hamilton Average Sale Prices year over year show that the increase in detached, town home and apartment styles homes varied from January 2019 to January 2020. The largest increase at 26.8% may be attributed to various factors such as millennials entering the market, people from the GTA finding affordable options here or even investment properties, an increased number of new condo builds and changes in mortgage rules forcing buyers into more affordable options.
Sellers: Housing inventory nationally is at a 15 year low. For anyone considering selling I can guide them through the steps of how to present and market their home to get it’s best price. Actually winter or early spring is even a more lucrative time to sell rather than waiting for the mid spring market since buyers are hungry for inventory and there is so little choose from. Many sellers want to showcase their home once the flowers are blooming and grass is green but in reality there are plenty of buyers ready to purchase much earlier in the year with very little on the market to choose from.
Buyers: For anyone planning to get into the market place, try to do it sooner rather than later if possible. I have over 16 years of experience in the market and the majority of that time was through intense bidding wars so I know how to get you the competitive edge. There are many things to consider when putting in an offer and timing is important. Having a real estate salesperson on your side with a quick response can be key.
Corinne Byggdin has been a practicing real estate agent for over 16 years. To contact her for a real estate consultation and/or market evaluation click here or find her contact information below.