The results of a survey on choices and buying and selling intentions in Quebec’s real estate market commissioned by the Fonds immobilier de solidarité FTQ, the Quebec Federation of Real Estate Boards (QFREB) and the Association des professionnels de la construction et de l’habitation du Quebec (APCHQ) were recently released. The Leger survey, which was conducted in February and March, finds that members of Generation Y still prioritize home ownership, despite major obstacles in their paths.
According to the survey, 43 per cent of potential homebuyers in the next five years are in Gen Y. 60 per cent of respondents between the ages of 18 and 34 believe that home ownership means a better quality of life, while 58 per cent aspire to own a home because it means freedom from being a tenant. Meanwhile, 59 per cent aspire to own a home because they believe it is a good long-term investment. Of this group of respondents, 46 per cent plan to buy a main residence within the next five years.
The survey found that of Gen Y respondents that anticipate buying a home in the next five years, 83 per cent already know what type of property they want: 59 per cent are interested in an existing home, while 24 per cent would look at a newly-constructed home. 17 per cent of respondents were undecided.
“The main reason young households would buy an existing property is that it costs less than a new construction. However, they plan to make renovations in the near term,” said Paul Cardinal, QFREB director of marketing analysis, in a press release. “As for those who prefer a newly-built property, the main reasons are a desire to be the first ones to live in the home, and a preference for a turn-key property.”
However, despite their intentions, many young households are plagued by financial, professional or personal situations that may prevent them from moving ahead with their plans. 24 per cent of Gen Y survey respondents said coming up with a down payment is an obstacle to buying a home in the next five years, while 39 per cent only began saving up for a property within the last year.
The survey indicated that 67 per cent of first-time buyers would choose a cautious five-year mortgage term and 69 per cent would select a fixed rate. Also, 60 per cent of first-time buyers reported to make more than one mortgage payment per month in order to pay less interest.
“The study shows that buyers are looking for stability an take their obligations very seriously,” said Normand Belanger, president and CEO of the Fonds immobilier de solidarité FTQ. “This bodes well for the future of the real estate market in the short and medium terms.”
The survey found that 11 per cent of owner households live in condos, with 20 per cent of respondents saying they would buy a condo in the next five years, and the percentage of possible condo-buyers increased with homeowner age.