Tag Archive for young families

Boomers upsetting real estate pattern

Healthy and youthful, they’re renovating rather than selling

By Shellie Chowns, CANOE

Who says just because the kids have moved out you need to downsize? More baby boomers are staying in their family-sized homes, but how will this affect the housing market?

Baby boomers are the healthiest, most youthful generation of retirees to date. Many are capable of, and financially able to, continuing the upkeep on their three or four-bedroom homes.

Normally, empty-nesters downsize and their homes are sold to a new generation of young families. This pattern creates at least two real estate transactions and helps support neighbourhood rejuvenation. Boomers choosing to age in place is causing a shift in the traditional pattern of the housing market.

Instead of re-entering the housing market in pursuit of a smaller home, many baby-boomers are renovating instead of selling. Thanks in large part to boomers, home renovating has grown into a $25-billion industry in Canada.

Outdoor living rooms, gourmet kitchens and spa baths are just a few of the luxury renovations boomers are choosing, and updating the decor and increasing energy efficiency can really refresh a home. Unlike first-time homeowners in the resale market, boomers have big budgets to renovate their big homes with.

On top of home makeovers, we’ll need smart policy changes to follow suit if we want our suburbs to remain vibrant. When homeowners choose to stay in their homes long after their kids are gone, it depletes the neighbourhood of school-aged children, resulting in several school closures over the last few years.

Interestingly, there are several new neighbourhoods full of young families with children but we can’t justify building new schools while others are closing.

This impact to our education system is just one of many that boomers will have on society. We’re already seeing products and services that cater to this discriminating clientele, as this is a generation who will demand change like none before them.

As boomers continue to age, perhaps one of the greatest challenges we face is how to make health care, shopping, amenities and public transit available to seniors still living in the suburbs.

Ideally, aging in place will drive practical policy change that will permit retail and light commercial businesses to come into residential neighbourhoods, creating unique small-scale communities throughout our city. Likewise, a shift in traditional NIMBYism attitudes will also be necessary to permit the transformation.

Aging in place also presents several social and economic opportunities. The province just responded by legalizing the construction of secondary suites. This new legislation will allow the existing stock of large suburban homes to be converted into smaller, separate dwelling units with private entrances.

Some boomers already have children and grandchildren living with them, helping adult children to get on their feet financially after finishing school or when starting a family.

Having a retired or semi-retired grandparent at home also helps working parents with child care, and in some cases, grown children are choosing to move back in with an aging parent struggling with a health concern. A return to multi-generational family units may assist our province with the health care burden we will soon face.

It remains to be seen how the baby boomers will affect the housing and renovation markets over the next 20 years, but we can be sure it will be significant. Fortunately, the home building and renovation industry has always been quick to adapt to market needs and able to provide products and services that help families through times of change.

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Contact the Jeffrey Team for more information  -  416-388-1960

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Simplicity of living in small community

Yourhome.ca

Moving from the city to the suburbs is a decision often made by growing young families looking for bigger yards or retirees looking to escape the hassles of city life in search of a quieter lifestyle.

But for Lisa, a young urban professional working for a large retailer, after seven years living in some of the trendiest neighbourhoods of Toronto’s west end, it was just time to get out of the city. Tired of fighting traffic, she also yearned to find a true sense of community. She was also questioning whether home ownership was really for her. For the last four years she has lived in a condo townhouse she purchased in the Junction area.

Her experience with owning a home was that there was a lot of associated costs on top of the mortgage that were often hard to plan for — a return to renting was becoming part of a bigger plan. She decided a move to the suburbs might present a more appealing lifestyle. Ideally, it would be a small town with character; perhaps an apartment in one an established community with access to hiking trails and none of the headaches of daily city traffic.

“I used to take the TTC to work until the fares went up, then I realized that for $2 more a day I could drive to work. But then I found I was often driving through construction along narrow streets and it’s just frustrating,” she says.

Lisa, who grew up in Brampton, realized she wanted to live in a smaller community with more open spaces. She sold her condo at a fairly good point in the market, although admits she may have missed the peak by about a month.

She looked northward to York Region and after checking out Newmarket, decided the town of Aurora with a population of about 53,000, had more the feel she was looking for to call home.

“Newmarket didn’t resonate with me. I was looking for a smaller town and discovered things like a regular famers’ market in Aurora,” she says.

But while she decided on Aurora, she realized that because she didn’t really know the area well enough she would rent, not buy.

“I met with a financial planner and decided that based on my current financial situation and the costs associated with selling and buying I would wait. There are a lot of costs associated with home ownership,” she says. “Now I get to see if I’m really comfortable here and scope out the various neighbourhoods before making a commitment to buy again.”

She started looking online for an apartment using the classified section of the local newspaper and discovered Aurora didn’t have much in the way of traditional rental accommodation. It took her a while to find a suitable apartment and landlord that would accept her two cats.

“It became a bit of a journey. There wasn’t much in the way of standard apartment buildings and I have pets and it was difficult to find anyone who accepted them,” she says.

But she kept looking and finally found a home; the lower level of a raised bungalow in north Aurora. The landlord was fine with her two felines and the house was located in a mature neighbourhood — one of the priorities on her list. It’s also five minutes from walking trails and close to transit, should she need to get into the city.

Along the way it also became apparent that Lisa would be able to transfer from her job in Toronto’s downtown core to a location opening in Newmarket. Now her commute to work is about 10 minutes.

“I’m very happy with the place I got. I drive past horses on my way to work; it’s fantastic,” she says. “I no longer race against traffic every day.”

And when she wants to go into the city, it’s about a half hour drive, or she can take the GO bus.

“I would never really have imagined in a million years that I would be living here — there are a lot of things I love about city life, but I no longer have an interest in fighting traffic. I just found the infrastructure didn’t really support all the people coming into the city every day,” she says.

Living in Aurora, Lisa says she notices other differences day-to-day.

“People say ‘hi’ on the street. I have time now to go to the gym and I certainly don’t miss the pressure of the traffic,” she says.

Lisa’s not sure how long she will rent for, but says she’s not in a rush to dive back into buying a home. For now she’s getting to know Aurora and its different neighbourhoods. She likes the design of the townhomes in the area and may buy again, eventually.

But for now, she likes the simplicity of coming and going from her rented bungalow.

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Contact the Jeffrey Team for more information  -  416-388-1960

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Home buyers in the suburbs are about to cash in

Tony Wong – Yourhome.ca

To those who bought a home in the suburbs last year because they couldn’t afford a property downtown: Start counting your cash.

Home buyers in the Toronto market looking for affordable single detached homes headed to the burbs, resulting in a run-up in prices with property outside the central city appreciating the most in 2009 over 2008, according to a Return on Investment report by ReMax Ontario Atlantic Canada.

As many first-time buyers were lured by low interest rates in 2009, “affordability factored in heavily” with suburbs being the default choice as places to raise young families, according to the report released Thursday.

South Pickering took the title for best price appreciation for detached homes in the Toronto area, according to ReMax.

The average price of a home there increased 9.4% to $358,493.

That’s much better than the average 4% increase across Toronto for all types of properties, which includes condominiums and single detached homes.

“Pickering has been great for young families who want a larger detached home under $400,000 and it’s right on the border of Toronto,” said Jennifer Pearce, a broker with ReMax. “For the same price, you’d be lucky to get a semi in central Toronto.”

In second place, the neighbourhoods of Rouge and Malvern saw a 7.3% upswing to $368,095 for the average detached home.

In third place was North Pickering, with prices climbing 7.2% to $396,973.

Port Credit in Mississauga was in fourth spot, up 7% to $614,144.

In fifth place, representing the only central Toronto area, was Riverdale and Leslieville, with prices up 6.7% to $522,017.

Inner-city areas did not experience the same sort of surge in pricing largely because of an absence of move-up buyers.

Weak consumer confidence, particularly during the first half, meant many potential move-up and luxury homebuyers stayed out of the market.

The east side dominated rankings for 2009, with Pickering and Scarborough appealing to families looking for homes under $400,000.

In central Toronto, where average homes range from $572,529 in Don Mills to $1.7 million in Rosedale, property values for detached homes were largely stagnant, up just 1%.

“Upper-end neighbourhoods were slower to rebound once the market regained momentum,” ReMax said.

“While sales were up considerably over a year ago and supply was tight in many of the city’s hot pocket areas, the expected surge in average price did not occur,” said Michael Polzler, executive vice-president of ReMax.

“Buyers remained cautious in their pursuit of home ownership, with most unwilling to overpay for the privilege.”

Analysts expect to see little price appreciation for existing homes in the Toronto market this year with a weak jobs market.

Despite that, the housing market was off to a strong start in 2010.

Some buyers are already concerned about a possible interest-rate hike in the second half, as well as the impact of the Harmonized Sales Tax.

“We expect to see a flurry of activity in the first half of 2010 as people try to avoid the impact of the HST and higher interest rates,” said Andrew Zsolt, president of Coldwell Banker Terrequity Realty.

The HST, taking effect July 1, will tax some services that are now exempt, such as legal fees and real estate commissions.

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Contact the Jeffrey Team for more information  -  416-388-1960

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