Ever-climbing home prices are encouraging retirement age Canadians to sell their homes, according to a recent study by RE/MAX.
“ … not all Canadians can wait out the housing market as many are relying on their homes as a source of retirement income,” RE/MAX said in its 2016 Market Trends report. “According to a recent RE/MAX poll conducted by Leger, 56 per cent of Canadians 55-64 who are considering selling their homes are doing so to release equity for retirement.”
This goes against a trend being seen among younger Canadians, who are dissuaded from selling in major markets such as Vancouver and Toronto due to competition among buyers, according to the agency.
“While sellers know their homes would be quick to sell, many are reluctant to become buyers themselves and enter the highly competitive market,” RE/MAX said. “Also, some potential sellers are hesitant to list their homes believing that home prices could appreciate further.”
According to the report, Vancouver and Toronto continued to see major price appreciation in the first quarter of 2016.
The average price in the Greater Vancouver area increased 24% year-over-year; and the average home price in the GTA increased 14% year-over-year.
A new study suggests a large portion of Canadians are preparing to get active in the housing market – and that means a greater pool of potential clients for agents.