According to a recent survey by Realtor.com, potential homebuyers in the 25-34 year-old range are feeling positive about the prospect of leaping into home ownership in 2015.
Some 12,000 “millennials” – those born between 1980 and 1999 – took part in the survey between January 1, 2015 and June 15, 2015. Findings indicated that strong sales would be seen in the latter half of the year with more first-time buyer sales. As one of the largest demographics of homebuyers, first-time buyers (who often fall in the millennial age range) have a large impact on the real estate market.
Since the beginning of the year, Realtor.com observed a slight increase in older millennials – those between the ages of 25 and 34 years old – visiting its website and mobile applications with the goal of buying a home. By mid-June, the site observed that those looking for property to rent decreased to 20 percent, from 26 percent in January.
Another revealing metric is the number of millennials who intend to buy a home within the next three months. In mid-June, 65 percent of 25-34 year olds responding to the survey indicated that they intend to buy a home within three months, up from 54 percent in January.
Here in Canada, low interest rates have served as a stepping stone for older millennials looking to purchase their first home. But not without a helping hand. BMO’s 2015 Home Buying Report found that 42 percent of first-time buyers are relying on financial assistance from Mom and Dad to help pay for their first home.
In addition, many first-time buyers are opting for condominiums in order to keep costs down. In major urban centres across the country, so-called “micro condos’ are popping up, offering prices as low as $100,000 for a cozy 350 square-feet of living space.