Canadalend.com, the leading low-cost, private mortgage solution provider in the country, is weighing in on a study showing that the majority of Millennials are still expecting to step onto the property ladder in Toronto as Canadian home sales set a new record in March.
According to a recent study, roughly two-third of Millennials in the Toronto area expect to own their own home, despite the average purchase price of $465,000 in Toronto being considerably higher than the national average of $350,000. Half of Canadian Millennials already own a home and 76% of Millennials who rent expect to purchase a home in the next five years. (Source: Kalinowski, T., “Two-thirds of millennials expect to afford a Toronto-area home, study suggests,” The Toronto Star, April 13, 2016; http://www.thestar.com/business/2016/04/13/two-thirds-of-millennials-expect-to-afford-a-home.html.)
“While housing affordability has been a major concern, a majority of first-time Millennial home buyers see the long-term value of owning a home in the Greater Toronto Area,” says Bob Aggarwal, President of Canadalend.com. “Existing home sales set another record in March, with prices rising at the fastest pace since before the 2008 recession.”
In the Greater Toronto Area, home prices in March were up 9.04% year-over-year. At the same time, the number of new listings fell to its lowest level for a first quarter in 12 years. In Hamilton, home prices increased 10.5% year-over-year, while across the country, Canadian home prices increased 0.8% in March, the biggest increase for that month in eight years. (Source: “Teranet House Price Index,” HousePriceIndex.ca, April 15, 2016; http://www.housepriceindex.ca/.)
“In Ontario, the Greater Toronto Area and Hamilton continue to drive the spring home buying season with strong demand and a shortage of listings,” Aggarwal concludes. “With interest rates expected to remain near record lows and the improving Ontario economy, consumers are feeling more and more confident. As a result, the momentum in the Canadian housing market is expected to continue.”
Canadalend.com is one of the largest private mortgage brokers in Canada, providing its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addressing financing concerns.