Older clients jumping into the condo market

If you’re looking for leads to refer on to your Realtor partners, a new survey suggests your older clients are the soundest bet.

Older clients jumping into the condo market
If you’re looking for leads to refer on to your Realtor partners, a new survey suggests your older clients are the soundest bet.
 
A recent BMO Capital reports shows that demand for condos among potential homebuyers is greater among Canadians 50 and older.
 
“Condos remain an affordable alternative to the pricey detached market in some major cities,” Sal Guatieri, a senior economist at BMO Capital Markets, told reporters. “For example, a typical Toronto condo today requires just 22 per cent of a median family's income to service; Vancouver condos – while more expensive – are still affordable at 28 per cent of income.”
 
According to the survey, some 30 per cent of prospective buyers over the age of 50 said they are willing to buy a condo over the next five years, compared to just 17 per cent under 50.
 
A full one-third of prospective buyers in Toronto said they were planning on buying a condo, similar to the Calgary market, where 33 per cent showed the same interest – both slight increases compared to a year ago.
 
However, the Vancouver and Montreal markets are a different story.
 
Vancouver fell from 33 to 28 per cent, whereas Montreal slipped to 24 per cent, down three points from 2012.
 
The BMO survey is good news for a Toronto condo market that has seen construction stall and financing falter. Market results released by Urbanation Inc. – a leading condo analysis firm – show that a total of 2,728 new condominium apartments were sold in the first quarter of 2013, down 55 per cent from Q1 2012; reflecting a 29 per cent downward trend from the 2012 fourth quarter.
 
Compounding the problem is a potential $2 billion to $3 billion financing gap for developers, as lenders pull back from the condo market.