Millennials are cutting the pretense by accepting the fact that buying a home now is more challenging than it used to be for their parents. Millennials now feel like they are being swindled in the real estate market as home prices makes it impossible for them to own a home.
Home-ownership for many millennials is one step towards being independent and it is also seen an a very good investment. But all this will be made possible if one is able to afford a home.
But at the current state of the real estate market, millennials are finding it more difficult to own a home than their parents did years ago.
Home prices are expected to increase further this year according to the Toronto Real Estate Board. Homes prices are anticipated to reach a $825,000 average by the end of the year. High prices a partly as a result of short home supply in the market where demand is very high and the Canadian population is on the increase, while an increase number of foreign buyers are also pushing home prices higher.
To show evidence of the shortage in supply, the Building Industry and Land Development Association revealed statistics showing in December of 2016, there were only 13,670 homes available in the Greater Toronto Area in comparison to the 30,400 homes that were available ten years ago. In January 2017, there were only 719 homes available on the market which has led to intense bidding wars which are fueling home prices.
At the rate home prices are progressing, it seems millennials dreams of owning a home might just as well remain as a dream for them. But for millennials that are fortunate enough, their parents are helping them come up with finances to make their down payments.
However, there is a high likelihood that the government will consider millennial buyer’s in the upcoming budget. This move by the government if made will come as a great help for millennial buyers.