There has been a noticeable decline in mortgage activity amongst Canadians. Generally speaking, younger individuals – ages 38 and younger – seem to be struggling to break into the residential real estate market. While overall home sales have been down year after year, the areas that have seen activity are from individuals aged 54 and higher.
Boomers and Pre-War Generations: Currently The Most Dominant Buyers
According to an article posted by New In Homes, a recent poll conducted by TransUnion Canada – a credit specialist – examined mortgage activity across the country. The results showed that while overall growth was slow, it little activating that has been driving the market belonged to older individuals. The biggest growth market appeared to be in Ottawa.
Why Is This Demographic The Most Dominant?
There are a couple of reasons this could be the case. The factors suggested by the study indicate that younger generations simply do not have the money. Tougher stress tests from banks and lenders, as well as higher interest rates are the reasons young people claim as why they have not entered the real estate market.
Helping Families And Looking For Smaller Spaces
As for why older generations seem to be doing well, it could be they are helping younger generations by purchasing homes for their adult children, or adult grandchildren. Another factor could be downsizing. As people get older, they may be looking for smaller space, or the benefits of condo living where much of the maintenance is cared for by the property managers.
If you are interested in looking purchasing a condo or other real estate property, it’s important that you understand all of the details of the investment. Consult a real estate lawyer for a more comprehensive understanding of your purchase before you sign any purchase and sale agreements.