Bad news, young people, your plan to access real estate could get confused.
You told yourself that the day, imminent, when the boomers were going to leave their bungalows en masse to follow Michel Forget in one of those “cool” retirement homes, the market would finally turn in your favor.
In your dreams, when you had raised a necessary down payment, a bunch of houses were found at the same time on the market. You just had to wait just a little longer to see real estate prices cool down, and then there you go, the cabin, the garden and the fence without mortgaging yourself to death.
Millions want to buy
Well no, it doesn’t seem to want to line up like that. In any case, not as fast as expected, and certainly not so cleanly.
The results of a Royal LePage poll released today show boomers are hanging on to real estate. We understand them, it is on this that they have built a large part of their heritage. For 40% of Canadian homeowners, home constitutes more than half of their assets.
Not only do they not seem inclined to leave the market, but many are thinking on the contrary of acquiring: “3.2 million baby boomers consider buying a house within 5 years”, headlines the press release of the agency. brokerage. It is for all of Canada, and we can guess that they are not first buyers.
The results of these polls should be taken with a grain of salt. Buying and moving intentions are less easy to achieve than voting intentions. Moreover, among those who “consider buying”, this translates into a lot of “maybe”. In Quebec, 24% of respondents say they want to “maybe buy a primary residence” over the next 5 years. Only 6% answer with a firm “yes”.
Few baby boomers are attracted to co-ownership (20% in Quebec), contrary to this long-held assumption that everyone would converge on towers in urban areas to avoid mowing the grass.
Most of the potential Quebec buyers of this generation tend to consider detached homes (53% in Quebec) and consider moving to a rural or recreational area (62%, including 48% “maybe”).
If these intentions are translated into reality, the movement is likely to transport the pressure on prices elsewhere than in the greater Montreal area. Besides, it’s already started, but only halfway. The rise in prices is accelerating in the regions, but it does not seem to want to slow down in the greater metropolitan area.
There is no rush for boomers to move into retirement homes, although a majority believe the time seems right to sell. It will stay that way as long as they don’t all do it at the same time. And it is not for that.
So young people, keep piling up your money.
Boomers less wealthy in Quebec than in the rest of Canada
I would not make a real estate decision based on a result of a Léger survey conducted on behalf of Royal LePage, but there is data in this survey that leaves no room for interpretation. : we confirm the lower homeownership rate in Quebec.
◆ In Canada, according to survey data, 75 % boomers are homeowners.
◆ In Quebec: 67 %.
◆ In Toronto: 74 % ;
◆ In Vancouver: 73 % ;
◆ In Montreal: 62 %.
Other evidence: Quebec boomers are more mortgaged than elsewhere.
◆ More than 40 % of these have not paid their mortgages, compared to 34% in Canada as a whole.
Whether or not you own a home and carry mortgage debt or not doesn’t necessarily make someone richer, but it is a good clue.