Millennials are Highly Optimistic About Purchasing A House Despite the COVID-19 Pandemic
While just 38% of Canadians are favorable towards the idea of purchasing a new house now, younger Canadians are optimistic than others.
Over 18% of Canadians aged between 18 – 34 stated that they’ve started looking into investment properties or homes to purchase during the pandemic. 33% of them are currently waiting for the housing market to fall further before purchasing a house.
Here are the findings from a Scotiabank Housing Poll, which was released recently:
- 36% of Canadians between 18 – 34 believe that the housing market is going to fall soon, compared to 24% in the 35 – 54 age group, and 17% above 55 years of age.
- 25% of Canadians believe that the housing market will fall over the next year due to the coronavirus pandemic.
- Over 70% of Canadian renters reiterated that they had no plans to purchase a new house in the next 12 – 24 months, despite historically low mortgage interest rates.
- Canadians looking to purchase a new property say they were primarily motivated by the low-interest rates.
While not everybody is interested in buying a new house, a majority of them are stuck in their houses for the foreseeable future due to social distancing regulations. Over 25% of Canadians said they were looking to renovate their homes soon.
The survey stated that 68% of Canadian homeowners looking to purchase a new house would be financing the purchase with their savings whereas 42% would be using the equity available from their primary house.
Over 50% of Canadians looking to renovate their homes have not yet planned out their financing arrangements. Just 12% of Canadians said they would be using their home equity to finance the renovations
Highlights from the Scotiabank 2020 Housing Poll
- Nearly 20% of Canadians between 18 – 34 stated that they were primarily motivated to purchase a new investment property or house due to the pandemic and the low housing prices/interest rates.
- Around 32% of Canadians aged between 18 – 34 stated that they were waiting for housing prices to fall further before purchasing a property.
- Around 36% of Canadians between 18 – 34 believed that the housing market would come down soon due to the pandemic, compared to 17% of Canadians above the age of 55 and 24% between 35 – 54.
- 51% of Canadians looking to renovate their homes are not yet sure about how to finance the renovations.
- 77% of Canadian renters said they weren’t planning on purchasing a house in the next 12 – 24 months despite historically low rates.
- Over 20% of Canadians have been financially affected by the pandemic, causing them to shelve their home purchase plans.
- Just 12% of Canadian homeowners have plans to use existing equity in their houses to finance their renovations. 22% are planning to cash in their investments, 20% are planning to borrow from the bank, and 3% are looking to borrow the money from friends or family.