In this story at the Globe & Mail, we get an update on one of the world’s more resilient housing bubbles just north of the border, one that includes some pretty impressive figures for not only home prices, but for the size of the down payments being made.
The average first-time home buyer in Canada is 29 years old and expects to be able to put down a down payment of $48,000 on a $300,000 home, according to a recent poll by the Bank of Montreal.
But the study, released Tuesday, also found that price expectations vary widely, depending on where the home buyer lives in.
Those in Atlantic Canada say they expect to spend an average of $224,000 on a first home, while those in British Columbia anticipate to pay an average of $454,000.
Vancouver topped the survey as the most expensive city, with buyers there saying they’re going to shell out an average of $539,000 for a home, followed by Calgary at $474,000 and Toronto at $446,000.
Getting down payment help from Baby Boomer parents with huge amounts of home equity (as would be expected from the average home prices cited above) is said to be a major source of funds for home buying. Otherwise, I don’t know how your average 29-year old comes up with an average $48,000 to put down.
While the 10+ percent “skin in the game” is nothing like the U.S. lending that was going on early in the last decade, Canadians seem to have a unique inter-generational housing bubble driver via this down payment assistance. Of course, it’s still not going to end well…