Young Canadians to Drive Real Estate Market in 2010
A new survey commissioned for RBC Royal Bank shows that younger Canadians are expected to take the lead in home buying in 2010. Low interest rates, new jobs and perceived “good prices” are cited as top reasons as indicated by the survey. This seems to show a definite shift in attitudes in this group of young Canadians.
So, how young are we talking? According to the survey almost double the percentage of Canadians between the ages of 18 and 24 were “very likely” to buy real estate in 2010 (based on the 2009 survey). However, while a spokesperson for CIBC World Markets agreed that younger people are interested in home buying, he felt that the age group was likely to be slightly older at 22 to 28 years of age.
While there is a real sense of urgency for young adults to jump into the real estate market because of the factors listed above, there is a belief that this group is also being pushed by their parents who remember when mortgage rates were considerably higher. It doesn’t hurt that taking out a mortgage early in your life gives you more years to pay it off.
