It is common especially in big cities like Vancouver and Toronto to hear of bidding wars, bully offers for houses and houses being sold for hundreds of thousands beyond the normal asking price. Every day we get tons of headlines and reports from the media about the increase in the housing prices. So are the reports and headlines from the media affecting the market by instilling fear in buyers about the current trends?
A recent study done by TransUnion Canada states that the answer to that statement is “Yes”, according to one demographic study. More than half of the Millennials in Canada (considered to be aged 18-34) accepted the fact that the reports and headlines about the house prices are getting them anxious about how they can buy houses in the future.
Braden Halpin agrees with this, he is 28 and renting a condo in downtown Toronto. “Of course. Half the time I feel I need to do whatever I can to get into the market immediately, the other half I’m wistfully searching affordable properties in Thunder Bay and imagining they existed in the GTA.” What is more important to note is that, it is more likely that the residents of Ontario agree to the fact that the headlines are making them anxious than in the rest of the country.
Well on a positive side of things, more than 55% of Millennials believe they would be in a good financial position within the next five years to purchase a home. Halpin also sees himself in this position but with a qualifier. “I worry that I will be financially limited in almost every other aspect of my life because of the rising costs.”
Heather Battison, who is the Vice President at TransUnion, recommends that, “Potential homebuyers should review their credit report and score at least six months before shopping for a home to allow time for credit building, if required.” Unlike new home buyers, Halpin is not afraid to get a gredit report and check his credit score, he says, “I obsess over it.”
Battison says, “I made a foolish mistake with my credit when I was younger which has made me particularly sensitive to staying on top of my credit score.” But also, goes further to say there are several ways to build credit. “Applying for a secured credit card, keeping your credit balances low and paying your bills on time.”