A new study conducted by Genworth Financial, shows that millennial homebuyers are well-educated, financially literate and doing their homework before entering the housing market in Canada.
We already know that the majority of first-time homebuyers are millennials, but they are becoming an even larger portion of the homebuying market, with 50% of the workforce expected to be millennials in the next five years. This is great news, because it means that this generation of homebuyers is better-informed, but is also means they want access to information (and all of the time). This will likely set the trends for the mortgage and real estate markets over the few years to focus more and more on online communication methods
They are hyper-connected and hyper-informed. Many of them have no landline; 83 per cent of millennials sleep with their mobile device. Despite this, by 2018, millennials will have the largest spending power of any other generation, he said. They grew up reading “The Wealthy Barber” and watched their parents go through a recession, so they’ve also learned to be fiscally responsible. [Genworth Financial]
Other notable trends from this report show that first-time homebuyers have higher incomes (in most cases) and tend to work full-time and possess a post-secondary education. They also typically consult a mortgage professional when they are looking to purchase a home.
Seven in 10 respondents say they used their non-registered savings account to obtain a down payment, while four in 10 used the Home Buyer’s Plan through their RRSPs. The majority — 79 per cent — were confident in their long-term financial health. [Genworth Financial]
If you want to read more on this report on millennial homebuyers, you can find all the details on the Genworth Financial website. And as always, you can contact me with any questions.
