🏠📈 Hang on to your toques, folks, because the Canadian real estate scene is still hotter than a mug of Timmie's double-double! Despite tighter lending rates and a dwindling supply of homes, Canadians' appetite for home ownership remains unshaken.💪
Royal LePage dropped some spicy stats recently, saying 23% of our non-property-owning friends are thinking about taking the investment plunge in the next five years. And of those who already have some skin in the game? Over half of them (51%) are ready to double down with another residential investment before 2028. That's right, 26% of ALL Canucks are eyeing an investment property in the next few years. 🏢💰
Why is real estate still hotter than a mid-July day in Regina? Phil Soper, the Big Cheese at Royal LePage, says it's all about building wealth over time. Plus, it's a perfect way for families to provide a foot in the housing market door for the next generation. 👪🏡 Even with increased lending rates and fewer houses to choose from, the young guns are eager to start building their financial future with real estate. Some are even prioritizing investment properties over owning their primary residence. Wild, eh?
Interestingly, 15% of Canadian residential investors don't own their primary residence. They're mostly renting or bunking with friends and family for free, and the majority of them are between the ages of 18-34.
Of course, with higher lending rates comes higher costs for variable-rate mortgage holders. Even the most seasoned investors are feeling the pinch, with 31% mulling over selling one or more of their properties. Investors aged 18 to 34 are the most likely to be weighing this decision (54%).
Yet, here's a plot twist. Despite expectations that the investor segment would take a serious tumble during the pandemic, the downturn was just a blip on the radar. The situation quickly rebounded with rents not only recovering, but shooting up faster than the price of gas. 📈⛽
Here's a quick snapshot of some other highlights from the Royal LePage 2023 Real Estate Investors Report:
🔸 About 11% of Canadians (that's roughly 4.4 million folks!) already own an investment property.
🔸 Nearly a third of Canadian investors have contemplated selling at least one of their properties due to higher lending rates.
🔸 20% of Montreal investors could sell a property within the next two years, while 24% in Toronto and 28% in Vancouver may follow suit.
Stay tuned to keep your finger on the pulse of the real estate scene! 🇨🇦🏠