Who Are The Millennial’s?
Good morning Smart Home Choice members. There are a number of things happening in the market today and I thought I’d share some of them with you. I’m huge on stats and figures and what’s happening in the market as it helps me make educated decisions on how to plan a head to make the right choices. Now some of you may have heard a number of different things in the media. I’m here to tell you what I’m seeing in the streets.
Over the past year while looking for homes….. I and a number of our members have lost out on homes due to multiple bids. This is still happening today…. the markets are strong and there’s a lot of people in the market looking for homes to buy and rent. So lets jump right into it!!Did you know that;
- The Millinnial’s are coming. Who are the Millennial’s you might be asking…. well you’ve heard of the baby boomers from 1946 – 1964, over 80 million strong. The Millinnial’s are just as strong, born between 1980 – 1995 and there are approx. 75 million of them. Guess what… they’re starting to look for homes and they’re rapidly taking over from the baby boomers who are pushing 60.
- Over 100,000 people come to the GTA every year. I don’t know about you but that’s a ton of people, meaning more homes required. In fact, with that many people you need at least 60,000 new homes each year to keep up with the demand. If you want a great chart to show where the bulk of people are migrating to, check this out. Like I’ve said before, Courtice is on fire!!! Great places to invest.
- 50% of the buyers out in the market are purchasing starter homes. Right up my alley!! When you get into real estate, you want to get into homes where the demand is high. It makes it easier to fill your property and personally, I like to sleep at night.
- The GDS (Gross Debt Service) ratio in Canada is currently sitting at 32% which is good. Most lenders require this ratio to be no higher then this amount.
- Prices for homes in Canada are on par based on income levels and the current interest rates in the markets.
- Many reports have indicated that the US have yet to hit bottom. It’s estimated they have another 20% to go. With that being said, it’s expected that the interest rates will continue to remain low.
- The US federal reserve has just recently announced that they will not increase their interest rates.
- The prices of homes continue to rise in Canada and is expected to go up approx 2% this year. If however you purchase in the right areas you can stay ahead of this projection (go back to the link above… Great places to invest).
- Here’s an interesting one….. income growth has outstripped house price growth over the last 10 years. This is a direct result of the low interest rates that we continue to see.
- The default on mortgages in the US is over 9% while in Canada we are at .4%. That’s over 20 times greater then the Canadians….. WOW!!
So why all the facts?? I’m interested because I invest in real estate and I want to know where the market is heading and how to position myself for the next few years to stay on top.
Until next time…. Make the Smart Choice.
Gary Hibbert
