Baby boomers won't downsize anytime soon: Royal LePage survey

Results of a recent Royal LePage study released today.

Despite the perception that aging Baby Boomers may create an oversupply of traditional single-family homes as they downsize into smaller residences, a new Royal LePage Real Estate survey shows that demand for suburban detached homes remains strong among Baby Boomers and Generation Y.

The poll by Leger Marketing found that of the 40.6 per cent of Baby Boomers (born between 1947 and 1966), who do have plans to move to another primary residence, almost half (43.5 per cent) are looking to purchase another primary residence that is a similar size or larger than their current property. Of the total responses from Baby Boomers who intend to purchase their next primary residence, 66.8 per cent said they will do so in the next five years.

“Baby Boomers are the wealthiest generation in Canadian history. They live in large homes with ample space for their many possessions. They love their garages and their yards. This study clearly indicates that contrary to popular belief, most Boomers do not intend to downsize anytime soon,” said Phil Soper, CEO of Royal LePage Real Estate.

Male Baby Boomers, who are planning to move, are more keen on upsizing their residence than women, with 23.0 per cent reporting that they plan on moving to a larger residence compared to 12.1 per cent of women. Baby Boomers looking to purchase a condominium prefer less amenities and low maintenance fees (54.5 per cent) over properties that have many amenities (39.1 per cent). Seventy-eight per cent of Baby Boomers currently own their own homes.

Contributing to the desire of Baby Boomers to continue to invest in large, suburban homes is the reality of housing children well into adulthood. According to the survey, a quarter of Generation Y lives rent free because of arrangements with family or friends, but that number climbs to 33.4 per cent in the Prairies, 29.7 per cent in Quebec and 27.2 per cent in Ontario.

“The adult children of Baby Boomers aren’t going anywhere fast. Good jobs have proven more difficult for them to find, they’re extending their studies and they’re living at home. It is no wonder the concept of swapping a family-sized home for a small retreat has lost its luster,” said Soper.

Meanwhile, members of Generation Y (those born between 1980 and 1994), who plan to purchase their next residence, are most interested in single-family multi-storey homes (50.6 per cent) and bungalows (19.0 per cent). Only 15.7 per cent of Generation Y said they plan to buy a condominium or an apartment. In comparison, 22.9 per cent of Baby Boomers looking to purchase their next residence desire condominiums or apartments.

The survey found that more than half of Generation Y planning to purchase their next residence, intend to purchase in the suburbs (55.7 per cent) compared to the downtown core of a city (21.7 per cent). Forty-three per cent of current non-owners who plan to purchase in the next five years say it is because they are planning to start a family in the near future. Among this younger demographic planning to purchase their next residence, the safety of a neighbourhood and proximity to their work, family and friends are the most important attributes when selecting a new home. Keeping in mind that nearly half of Generation Y listed their near-term plans to have children of their own (42.0 per cent) as a motivating factor to purchase, the least important factors are proximity to the downtown city core and restaurants or entertainment.

“The young people who make up Generation Y are our first-time home buyers. Like their parents, they dream of owning a lovely house in the suburbs, which provides value as well as access to parkland for children to play and the perception of greater family safety,” said Soper. “Even as condominium living becomes more popular across Canada, the study results do not point to a corresponding decrease in demand for traditional single-family homes. For the Baby Boomers that do head downtown, there is a generation waiting to move in.”

Among Baby Boomers who plan to downsize when they purchase their next residence, the most popular reasons are to reduce maintenance (73.7 per cent), free up money for retirement (48.1 per cent) and for travel (30.9 per cent).

Regional Comparisons of Those Planning to Move

Regional Generation Y comparisons showed that more Ontarians and Albertans place importance on being close to the city’s downtown area or town’s core than Quebecers and those from the Prairie provinces. Likewise, a gym or fitness centre is more important to Ontarians, Albertans and British Columbians than it is to Atlantic Canadians or Quebecers. Atlantic Canadians also place less importance on proximity to public transportation, restaurants or entertainment than Generation Y living elsewhere in the country.

When comparing Baby Boomers across Canada, Ontarians, Quebecers and Albertans are more likely to choose a home in the country than British Columbians. More Baby Boomers from British Columbia value being close to public transportation when purchasing a home than those from Ontario and Alberta. In addition, there are no significant regional differences comparing Baby Boomers who want to upsize, downsize or continue to live in a similar sized property.

Get the most current market intelligence with our FREE Market Snapshot including prices of homes recently sold in your area. Get it here now.

I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

Act now to keep water out of your basement

At a social outing this weekend a former Saskatoon home inspector told me that he’s “buying up as much drying equipment” as he can get his hands on right now. He’s expecting a busy and profitable spring. We’ve had a lot of snow this winter. Some of that will end up in basements.

If the Weather  Network’s 14-day weather trend for Saskatoon is correct some of this snow is going to be melting. The good news is that it looks like it should be a slow melt. The bad news? A lot of ice will be created overnight. That ice could back up your gutters and downspouts and prevent water from moving away from your house. A lot of snow will produce a lot of water if the weather is even a little warmer than predicted. Act now to protect yourself from costly flooding by having snow removed from your roof (use a professional to avoid falling) and then move that snow away from your home’s foundation.

If you don’t get to it and water gets to you I’d be happy to refer you to a guy with a lot of drying equipment for hire.

Get the most current market intelligence with our FREE Market Snapshot including prices of homes recently sold in your area. Get it here now.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

 

 

Saskatoon real estate week in review: February 17-23, 2013

The Saskatoon real estate market continued at a steady pace this past week. Sales of single-family homes and condominiums were lower than the previous week by just four units. The year-over-year decline was a bit more pronounced. During the same week last year Saskatoon real estate agents reported 76 sales to the multiple listing service®.

New listings broke into triple digit territory once again after a short retreat last week as agents brought 112 new listings to the MLS® system, up by 21 from last week. That’s nine more homes than were added during the same period of time in 2012.

Click the image for a larger version of the graph.

Moving into the final week of February the total inventory of MLS listings in the residential category stands at 1027, up twenty-eight from last week to top last year’s levels by just eight properties. Today we have 609 single-family homes (detached houses) and 326 condominiums showing an active status in our system. That puts Saskatoon’s available house numbers about 33 units ahead of where they stood last year. Condo inventory is lower than it was a year ago by about as much.

Click the image for a larger version of the graph.

With very few luxury home sales in the mix this week the average selling price of a Saskatoon home slid sharply lower adjusting more than thirty thousand dollars from last week to settle at $303,758. The weekly median tumbled by a bit more coming down thirty-three thousand dollars to $300K. The six-week average price followed suit and dropped to it’s lowest point this year at $330,651. That represents a seven thousand dollar decline from last week leaving it ahead of where it stood at the same time last year by a little more than twelve thousand dollars. Finally, the four week median price also fell by about six thousand dollars reaching $321,500 to take an annual gain of $9,500.

Click the image for a larger version of the graph.

In spite of a fairly large gap between sales and listing numbers several buyers showed up ready to bid up their deal to secure the home. Six buyers paid more than the asking price with an overbid averaging $2,433. Another 11 buyers offered up all that the seller was asking while 48 others made off with a bit of a discount, one that averaged $7,239.

Other notable MLS® activity this week included 18 cancelled and withdrawn listings, 9 expired listings and 22 price adjustments.

Click the image for a larger version of the chart.

Highlights from the news this past week

Home building slump forecast in latest sign of faltering economy – Financial Post
‘Move-up buyers’ did well in Regina and Saskatoon, real estate report says – CBC
Canadian housing markets still cooling as prices decline for fifth month – Financial Post

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

Get the most current market intelligence with our FREE Market Snapshot including prices of homes recently sold in your area. Get it here now.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

Saskatoon real estate week in review: February 10-16, 2013

Saskatoon home sales surged forward this week reaching their highest point for any week this year as local real estate agents reported a total of 69 single-family home and condominium sales to the Saskatoon MLS® system. That number represents an increase of 20 sales compared to the previous week leaving us down from the same week last year by 21.

New listings moved in the opposite direction slipping by 27 properties compared to the previous week to just 91 Saskatoon homes and finished the week with roughly 35 fewer listings than were processed during the same period a year ago.

Click the image for a larger version of the graph.

After pushing ahead of 1000 listings last week for the first time this year, the total inventory of active MLS® listings in the residential category slipped lower to 999 this week. That’s a drop of ten from last week and just twelve fewer homes than were available on the multiple listing service® a year earlier. On a year-over-year basis the supply of single-family homes has increased by 16 to 590 while condominium inventory has fallen by about 30 properties to just 322.

Click the image for a larger version of the graph.

The average selling price of a Saskatoon home remained fairly stable compared to last week, increasing by just two thousand dollars to $334,585 while the median price for the week edged up about $11,500 to $331,000. The six-week average sale price moved higher over the week by roughly fifteen hundred dollars to $337,171 for an annual gain of a little more than twenty-one thousand dollars. Meanwhile, the four-week median price of a Saskatoon home edged up by almost three thousand dollars compared to last week to claim a year-over-year increase of twenty-six thousand four hundred dollars.

Click the image for a larger version of the graph.

On the heels of a few weeks that produced fewer sales at and above list price the market showed some signs of heating up a bit. Three lucky sellers managed to close a deal for more than they had been asking. In those instances, the average overbid came in at $9,700 to reach its highest point in several weeks. More notable was the number of sales at full asking price, a full twenty, or nearly one-third of all sales. Finally, 46 others hit the sold boards with a price below the list by an average of $8,520.

Other notable MLS® activity this week included 34 cancelled and withdrawn listings, 8 expired listings and 22 price adjustments.

Click the image for a larger version of the chart.

Highlights from the news this past week

After boom, Saskatoon office construction slows – Star Phoenix
Interest rate hikes seen as pushed back as dismal data mounts – Financial Post
Canada’s home sales rise in January easing correction fears – Financial Post

A map displaying the boundaries of Saskatoon real estate areas is here.
An overview of data collection and calculation practices for our statistical reports is here.

Get the most current market intelligence with our FREE Market Snapshot including prices of homes recently sold in your area. Get it here now.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate

Canadian home sales see year-over-year decline in January, 2013: CREA

The Canadian Real Estate Association (CREA), released national sales statistics for the month of January, 2013 today. According the CREA, “The number of home sales processed through the MLS® Systems of real estate Boards and Associations and other cooperative listing systems in Canada edged up 1.3 per cent on a month-over-month basis in January 2013…Actual (not seasonally adjusted) activity came in 5.2 per cent below levels reported in January 2012. About two-thirds of local markets posted year-over-year declines in sales activity in January.”

Highlights of CREA’s report    

  • National home sales rose 1.3% from December to January.
  • Actual (not seasonally adjusted) activity came in 5.2% under levels in January 2012.
  • The number of newly listed homes rose 1.6% from December to January.
  • The Canadian housing market remains firmly in balanced territory.
  • National average sale price was up 2% year-over-year in January.
  • The MLS® HPI rose 3.1% in January, the smallest gain since April 2011.

Read the entire report on Canadian MLS sales for January, 2013.

Get the most current market intelligence with our FREE Market Snapshot including prices of homes recently sold in your area. Get it here, now.

I’m always happy to answer your Saskatoon real estate questions.  All of my contact info is here. Please feel free to call or email.

Norm Fisher
Royal LePage Saskatoon Real Estate