Who’s Buying Homes in Ontario’s Housing Market

Millennials who’ve been living at home or in shared housing to save for a downpayment are poised to hit Ontario’s housing market hard when house prices drop. Early millennials are turning 40. The urge to invest in real estate couldn’t be realer. Know the mortgage risks and consequences.

Gen X and millennials are driving the housing market in Ontario. Boomers who renovated during the pandemic are staying put, at least for now, and that makes affordable housing harder to come by. How much to save for the first time homebuyers’ amount.

What’s Ahead for Millennial Homebuyers

With a Canadian-style recession in the wings and interest rate hikes not out of the red just yet, Canada Mortgage and Housing Corporation (CMHC) predicts housing prices will drop an average of 15% by spring 2023. That combination won’t improve housing affordability for millennials. But it will make prices lower when interest rates finally chill out.

CMHC sees lower inflationary pressures and interest rate declines converging by mid-2024. That should compensate for the rapid growth in housing prices caused by consumers staying home during the pandemic. Construction slowdowns and material shortages have further fueled the gap between supply and demand in Ontario. More on Canada’s First-Time Home Buyer Incentive.

It’s all the more reason millennials are anxious to buy.

What Millennials Look For In a Home

And millennials have very specific wish lists. The top 5 things millennials look for when buying a house are:

A detached single-family home.
More space, preferably 2,400 square feet.
Affordable older homes or fixer uppers.
Parking space, especially their own garage.
Large kitchens.
How much to offer over asking price.

4 Reasons Why Millennials Should Invest in Real Estate Now

Here’s why investing now makes sense.

1. When traditional homebuyers pull back from real estate markets, millennials have less competition. Variable rate or short-term mortgages are a bridge strategy to buying a home while interest rates are high. Incentives for the millennial first time home buyer Ontario. Can my line of credit be used as downpayment for CMHC mortgages?

Read more here:
https://www.axesslaw.com/articles/what-millennial-home-buyers-are-doing-now/