Poll Shows More & More Seniors Committed to Staying In Family Home Through Retirement

Published July 23, 2018 by Real Estate Leads

Seniors in a homeReal estate agents are as familiar as anyone with what is, or at least has been, the typical cycle for families in relation to home ownership in Canada. Once the kids have grown up and moved out and you’ve reached what’s called ‘empty nest’ status then typically it was often the case that a couple approaching or already in retirement would consider downsizing to a home that meets the much lesser needs of the two of them.

According to a recent Ipsos poll nationwide, 9 out of 10 seniors now feel it’s at least somewhat important to stay in their current home through their retirement. The poll surveyed Canadian homeowners of all ages, and found that those aged 65 and up are more likely than younger homeowners to value living out their retirement years in their home.

That’s quite a departure, and the fact that many of these homeowners live in detached single family homes in urban hotbeds like Vancouver and Toronto definitely has the potential to sway the real estate market and change how realtors approach their business. Here at Real Estate Leads, our online real estate lead generation system is a great way to get the power of the Internet helping you with building your client base. But it seems that some of the bigger fish, if you will, won’t be in the pond now.

Reasons for the Putting Off or Delay in Downsizing

As mentioned, detached family homes are few and far between in Canada’s major housing markets, and this trend of older owners staying in spacious detached homes may leave new homebuyers in something of a lurch. It’s a fact that construction of new detached homes in Toronto and Vancouver has declined to the lowest rates in decades, much of that attributable to rising land prices and municipal density requirements.

The situation is then becoming that new homebuyers are largely competing for existing homes even as city populations continue to grow, and that has certainly fuelled the soaring prices of recent years.

Why the new reluctance?Seniors may be avoiding downsizing for a fear of not getting as much bang for their buck as they’d hoped, particularly as the market begins to cool in Canada’s major metropolitan areas. For this reason, seniors thinking of downsizing to free up some cash for retirement may be reevaluating their expectations, especially if their live in Toronto or Vancouver.

While prices for single-family homes in both cities are dropping or moving in a straight line at best, condo prices are still soaring. This is typically where many ‘downsizers’ will be focusing their purchase interests, having long been able to buy one and then ‘pocket’ a nice retirement fund from the sale of their detached home.

Knock, Knock

More relevant to you here , however, is the fact that this may also explain the increase in realtors approaching homeowners about selling their home, and especially in Ontario. Another survey found a quarter of those over 75 responded that they’d been approached by a realtor unsolicited, meaning they’d never expressed interest in selling their homes before.

Successful realtors adapt, and those who are door knocking here are most certainly showing the hustle needed to adapt in these new market environments.

We see now that without an influx of homes coming back on the market as Canada’s population continues to age, it may be even more difficult for new homebuyers may to compete for buying the home they need.

Things Looking Up?

2018 to date has had cities like Vancouver and Edmonton seeing a surplus in home inventory for the first time in years, keeping in mind that prices have yet to react.

Homes for sale in Metro Vancouver reached a 3-year high in June, according to REBGV. This is believed to be because buyers are less active today, making for a volume of homes for sale not seen in the last few years. Edmonton is at a similar peak, the highest since 2008 for that city.

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