We are starting to see growth in the number of homes changing hands in the resale market — and one factor at play here is the bank of Mom and Dad.
The economists at CIBC Capital Markets first took a look at the growing reliance on gifts of wealth from family members for people looking to buy their first home back in the COVID days when residential real estate prices started to take off.
Now they have revisited the subject with an update that shows this is still a big thing. And it is not only for first-time buyers: mover-uppers are also calling on family to help fund the purchase of an upgrade.
According to the latest report, the percentage of first-time buyers getting help from family has been rising steadily in recent years and now sits at almost 35 per cent. And the average gift from Mom and Dad is growing too – having reached an average of $120,000 so far this year.
For those in the mover-upper category, 13 per cent received a financial gift from family averaging $160,000.
And these numbers were even higher in the pricey BC and Ontario markets.
