Home prices in Canada are going to increase by 3.2 per cent in the year 2020. In places like Montreal, Ottawa and Toronto, millennials are steadily shifting away from condominiums. In Montreal, the prices of two-storey detached buildings will increase by 6 per cent to 581,300 dollars as per estimates. The prices in Toronto will increase by 4.5 per cent to 1,027,200 dollars as well. The supply here is low and the population is growing rapidly. In Ottawa, the hike can be 5 per cent to touch 547,600 dollars. This region will benefit from political stability and sustained growth of the technology industry.
The millennials in Canada are in their thirties and they are getting married and moving in with their partners. They want to see their children grow in better places with an aim towards giving them better lives. This means that they will be spurring growth in home prices next year in a major switch to suburban areas.
Key market trends that are currently visible
There are agencies who are predicting that the prices for condominiums will still increase in Toronto by 6 per cent, in Montreal by 5 per cent, in Ottawa by 3.5 per cent and in Vancouver by 3 per cent. They are also predicting that the prices are not going lower. Additionally, there will be healthy growth in sales figures as well owing to high levels of demand in the market. There are only two cities where prices may decrease and these are Winnipeg and Regina. In Regina, the prices of two-storey detached homes are going down by 0.25 per cent and in Winnipeg, the prices will fall by 0.5 per cent as per forecasts.
If you want to invest in houses, then you can make a plan for buying a house before the price hike and you may profit from the increase in the future. If you invest in buying a house now then it will not only be profitable for the next year but also for many years in the future. If we see the results then we will come to know that in 2017, prices increased by 10 per cent and from 2014, they have gone up by a whopping 48%.
How millennials come into the equation
There will be shortage of homes and higher costs of materials for construction will keep prices on the higher side. A huge number of millennials are now entering the market and they are shifting from one place to another, thereby scaling up demand in many places. 5 million millennials will turn 30 and they will buy their first homes soon, so it cannot be imagined as to how many houses will be needed to cater to their requirements.
It is now profitable for builders because of the shortage of existing homes for sale. Prices will naturally keep increasing in this scenario and this will aid revenues since demand is already at sky-high levels. Millennials are those citizens who were born between 1980 and 2000. People think that this generation prefers cities instead of suburbs for daily living but survey reports are showing the opposite results. Only 5-10 per cent of millennials want to stay in the city and the others want to stay in the suburbs. This generation is so huge that if all of them come to a single city then there will be no place for them to stay.
This generation wants a home which is stylish and smart and the position of the house should be in a place which will enable them to connect with their friends and relatives better. The report shows that the millennials want to buy a home which is stylish in design and it is very important to them because they believe in displaying their own sense of aesthetics. Most Canadian home buyers are now demanding a laundry room for their homes which goes to show the evolution in buying preferences. This generation cares more about energy efficiency because a report says that they want to pay 2-3 per cent extra in charges for energy efficient features. Other features they want are a walk-in pantry, a garage, an outdoor space, outdoor kitchen sink, cook top, refrigerator, grill and golf course.
When you are going to buy your first house then you will have to be very careful about many things because it is your first house and your children will grow up here. Millennials will naturally influence the market hugely going forward and they are now finding greater value in living in suburban areas near major cities which are comparatively affordable and give them more breathing space for buying bigger housing units or even independent family homes in some cases. With good connectivity and proper infrastructure, distance from the big city becomes more manageable minus the congestion and soaring property prices.