Recently, a survey conducted in Saskatchewan on the future of home ownership. It revealed that 85% of Canadian Millennials are more optimistic about to purchase house in future and 49% are planning to enjoy homeownership in next 2 years.
But the falling housing affordability, declining supply and significant increase in immigration are becoming major concerns. But still why the millennial optimistic about the future of home ownership. Here are some significant reasons that why the young buyers are cautiously optimistic about entering in Canada’s real estate market.
They Are More Concerned About Their Financial Future
Yes, Canadian Millennials are more concerned about their future financial because owning house is still considered as a factor of a success in Canada. Paying a high mortgage, rent and them managing other expenses is really difficult. Additionally, paying a high rent means the money no savings at all. This is the reason they are more likely to buying Saskatchewan condos or Regina Condos to enjoy the sense of homeownership.
They Believe Purchasing House Or Condos Is a Great Investment
The 85% of the younger buyers believe that purchasing home or buying condos will be a great investment. The high mortgage, rent and engaging contract all make it difficult to save for the future. On the other hand, the home prices are increasing day by day, whereas the affordability is declining. Many people said that sometimes the price of renting of a good home is much more than buying a condo. That’s why many younger buyers are more likely to buy Saskatoon condos to enter the housing market in Canada. Moreover, condos are a huge financial investment as they have a high resale value.
Home Ownership Is a “Cultural Norm”
Another major reason that why buyers are more optimistic about ownership is that it is the cultural norm. It means renters in the Canada just have limited options and they have fewer chance of growth. The sense of homeownership is just like a proud and living as a renter means no growth. They believe that owning a house is like having roots that give satisfaction and affectation to the millennials. This is why building communities is the growing trend in Canada’s realty market.
Challenges For Young Buyers
Though young buyers are optimistic about their home ownership but still they are facing challenges on their way to enter the housing market in Canada.
Declining Affordability: the individual region of the Canada is facing unique challenges such as realty market of Toronto and Vancouver is experiencing high demand and lack of supply. That’s why the prices of houses are increasing that in turn declining the affordability.
Market uncertainty and tax: the prices of housing are increasing in different cities or regions of the Canada and now 15% tax has also added that influence the realty market. That’s why it is getting more expensive. Moreover, the Bank of Canada has also raised rates per quarter and as a result mortgage rates are also increasing.