According to a recent poll by IPSOS, 9 out of 10 seniors are deciding to stay in their homes post-retirement.
HuffPost states that the construction of new detached homes in Toronto and Vancouver have declined to their lowest rates in decades, partially due to rising land prices and municipal density requirements. This has left new homebuyers in the lurch, competing for existing homes, amidst growing populations and soaring prices.
Without an influx of homes coming back on the market as Canada’s population continues to age, new homebuyers may face an uphill battle competing for a home. Add to this seniors' avoiding downsizing out of fear of not getting their money’s worth for their homes, as the housing market begins to cool around Canada’s major cities.
“Sellers will still make a profit, but they might walk away with less money” than they would have made until recently, says Penelope Graham, managing editor at real estate website Zoocasa.
This is because, while prices for single-family homes in both Toronto and Vancouver are dipping or coasting, condo prices are still soaring.
While the outlook for new home buyers may seem bleak, things may be looking up.
Cities such as Vancouver and Edmonton are seeing a surplus in home inventory for the first time in years, even if prices have yet to react.
The supply of homes for sale in Metro Vancouver reached a three-year high in June, according to the Real Estate Board of Greater Vancouver (REBGV). REBGV president Phil Moore attributed the increases to a combination of factors.
“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Moore said in a media release.
According to the chair of the Realtors Association in Edmonton, housing inventory is at its highest peak since 2008. “We had a little bit more in 2008. But it’s definitely the highest since then,” Darcy Torhjelm said. “There’s lots to choose from in just about every category.”
Prospective buyers should not wait for this transfer of wealth from the older generations to the new, or else you might find yourself waiting for years on end. Instead, buyers’ best bet is to enter the market now, where Millennial’s Choice can assist you and lead you through the various options available. Send us an email at firstname.lastname@example.org with your information to get started!