This is a tough time for all Millennials looking to get into the real estate market. Housing prices are on the rise, there is low inventory and mortgage rates are at an all-time high. This is a challenging time for all young adults to become homeowners.
With challenges like these, many millennials have thought about leaving BC to find other cheaper options to live in.
A recent provincial survey by Royal LePage released in August showed that Millennials age 25 to 30 who want to buy are simply unable too. These buyers are facing limited inventory and high home values in regions like Toronto and Vancouver.
This is causing Homeownership rate to drop.
According to 2016 Census data released by Statistics Canada, just over half (50.2%) of millennials who no longer lived with their parents were homeowners in 2016, compared to 55.5% of baby boomers back in 1981.
Statistics Canada also found that in the Vancouver Census Metropolitan Area (CMA), Vancouver had one of the highest proportions of households (32%) whose housing costs were considered unaffordable – meaning that families were spending 30% or more of their total family income on housing costs. With conditions like these, it’s easy to see why millennials have struggled to navigate Vancouver’s real estate market.
The Stress Test that came into effect on January 1 has caused another barrier for millennials. Read more about the Stress Test.
So when is the right time for Millennials to jump into to market?
While some might advise being very cautious right now since to market has gone up 70% in past 3 years. Others might say the opposite and to get in sooner than later.
It all comes down to feeling comfortable with the decision you make. Finding ways to pass these barriers and purchasing your home.
- Buying a condo instead of a home and building equity.
- Having a parent to co-sign for a mortgage
- Purchasing a property together with your friends
If you’re a Millennial and are feeling stressed about purchasing your home, Get In Touch with us and we can help answer some questions you may have.