More young clients will buy homes

Most young Canadians between the ages of 25 and 34 (86%) say real estate is a good investment, finds this year’s RBC home ownership poll. That’s up from 78% in 2013.

Over the next twelve months, about 40% of those polled intend to buy a house or condo, compared to 25% last year.

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“Canadians [believe] in the strength of the housing market and want to participate more than they have in recent years,” says Erica Nielsen, vice-president of home equity finance at RBC.

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The majority of young potential buyers (62%) plan to buy a home with their spouse or partner, while 28% want to own property themselves. The poll finds people across the country are more mindful of their finances than in previous years, which means they can more easily afford houses.

Among those likely to buy a home within the next two years, 40% will be first time homebuyers.

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Poll highlights:

In B.C., 22% of young Canadians want to buy homes, up from 20% in 2013. Almost half (40%) say prices will continue to rise and they want to get into the market soon.

In Alberta, the percentage of people who want to buy homes has risen from 22% last year to 28% in 2014. More than half (52%) of those polled predict prices will surge.

In the Prairies, the amount of young Canadians who want to buy homes nearly doubled (from 12% in 2013 to 21% in 2014). More than 40% expect prices to increase.

In Ontario, one-in-four people (25%) want to buy homes, compared to 14% last year. Since about half (48%) think home values will rise, they want to enter the market.

In Quebec, the number of young buyers ready to be homeowners jumped from 13% to 23%, with 39% saying prices will inflate. However, more than half (61%) aren’t expecting a spike in pricing, so will take more time to choose homes.