First time local buyers vs. immigrant buyers
How big a gap is/will be the demand for expensive homes vs. cheaper apartments?
Being in the front of the market as a professional Realtor, I am seeing that our real estate market is being driven by new immigrants. New immigrant buyers typically bring 30% - 50% down payment, and are purchasing homes worth over $1,000,000.
The apartment market is much slower. Some of the many factors contributing to this are a lack of desire for apartments from new immigrants, price declines since 2008, over supply, and the tightening of mortgage regulations. There is big gap between what a new immigrant and what a local first time buyer can afford. Foreign investors are leery about investing in apartments, and are choosing instead to invest in detached homes. The result? We are seeing an increase in the price of land and detached homes.
I came across a very interesting article recently by Spencer
Thompson. He makes many good points –
some we may not agree on, but overall a great read. If you are interested in checking it out,
please click the link below.