Rising home prices reveal a generation gap

by Ryan Smith20 Nov 2015
While millennials are worried that real estate prices will keep on rising, baby boomers are almost as worried that they won’t, according to a new survey.

A recent study commissioned by the Real Estate Council of Ontario found that 84% of young people are worried that they’ll never be able to afford a home, according to a report by the Toronto Globe and Mail. Nearly 70% of baby boomers and seniors, meanwhile, are worried about getting the maximum value out of their homes.

“The younger buyers are really focused on affordability, Kelvin Kucey, deputy registrar for regulatory compliance at RECO, told the Globe and Mail. “The older ones are saying, ‘I want top dollar,’ and the younger ones are saying, ‘Come on, Grampa.’”

And what about the folks in the middle? According to the survey, more than half of people between 35 and 54 are worried that there’s a housing bubble in Canada on the verge of bursting.

But for younger buyers, fear of a bubble isn’t as great as fear that they’ll simply never be able to afford a home. For example, the survey showed that 68% of young buyers worried that they would be outbid by others. And Kucey said that such fear often pushed young buyers into making rash decisions – like making an offer without conditions when insisting on a home inspection might be wiser.

“Step away from the emotional nature of buying,” he told the Globe and Mail. “We’re really trying to focus on the idea of realistic expectations and protecting themselves.”
 

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