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30-Something Buyers to Dominate Housing Market in 2016


Under Real Estate

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December 28th, 2015

The year 2015 seems likely to go into the Toronto real estate record books for a number of reasons, including sheer volume of sales—likely to be more than 100,000 for the first time ever—and for prices. It was the year when the average price of a single detached home in the City of Toronto first surpassed $1 million. Month after month we marveled at the relentless pace of sales and ever-higher prices. How much longer could it continue, many wondered.

One real estate company that expects 2016 to be another year of “intense action and movement” conducted a country-wide survey of its franchise owners last week to see what the coming year holds for buyers, sellers and the real estate industry. Here are their key findings.

Optimism: The majority of respondents are quite optimistic about the Canadian housing market. Fewer than 5 per cent felt strongly pessimistic; another 20% were somewhat less than positive.

Affordability 1 : A majority of respondents believe that more Canadian households will choose to continue renting rather than buying next year. About 57% either strongly (15%) or somewhat (42%) agree that the cost of ownership will keep some would-be buyers out of the market.

Affordability 2 : Again, more respondents (40%) said that affordability would be the most important factor at plat in people’s home-buying decision. Other major factors include mortgage rates (12%) and the overall Canadian economy (32%).

Demographics : More than half of respondents (61%) expect to see the 30–39 age group dominate the market next year. The second biggest buying cohort will be the next group up, 40–49 years. Just 4% expect to see younger buyers (20–29) active in the market.

Bidding wars : Two-thirds of respondents think that bidding wars will become less common in major markets next year. Just over 10% think the opposite, that bidding wars will be more common.

Headlines : By a slim margin, survey respondents picked the (putative) housing bubbles in Vancouver and Toronto, and the bursting of those bubbles, to be the most reported on news stories of 2016. The other most commonly reported stories will continue to be about affordability, interest rates and foreign investment.

The survey was conducted for PropertyGuys.com, a franchise network that specializes in private sales. It was conducted during the week of December 11–18, with 60 franchise owners participating.

Thirty-Something Buyers to Dominate Housing Market in 2016 by Josephine Nolan | Condo.ca

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