Good news! The current buying trend is that the average first-time home-buyer is spending more!
1st-time home shoppers are spending more to get into their first house; while some are putting off the buying decision based on financial considerations; reads a recent report by the Bank of Montreal (BMO).
The average price spent by Canadian first-time buyers is about $317k, which is significantly up from $300k in 2013. This is according to the Bank of Montreal’s “First-Time Home Buyer’s Report 2014”.
In Vancouver the average homeowner bought in at $506K. Wow! That’s a half million. In Toronto: $408K, Calgary: $308K, and the average Montreal deal is only $237K.
Ironically, spending has continued to increase, the average down-payment amount has changed little from the previous year at $51K .
The BMO report also states that about 1/3rd of first timers wish for parents or other family member to assist in their purchase; a percentage that rises to nearly 40% in Vancouver and Montreal! Understandably…
So many, about 2/3rds, have made some drastic reductions to their lifestyle in order to save for their first home. About 60% say their home-buying decisions are being been delayed because of the steep prices, with about 40% mention out-of-reach real estate prices as the main reason.
As you know from being a real estate agent yourself, saving for a big downpayment is the most critical way to get a foot in the door of the Canadian real estate market. Those planning to buy should be well-prepared and have considered all options available to them.
The rising prices in the major markets are forcing first-timers to reconsider their first choice of housing. High prices in a few major cities, and the fact that prices are outrunning incomes in Toronto, are turning off some first-time buyers, while forcing others to go deeper into debt, tap their parents for hefty down payments and opt for a condo rather than a detached house. 60% of first-time buyers seem to say to themselves that they will maintain a strict budget 30% are prepared to go higher for premium properties.
How can you speak to more 1st time buyers? We would like to send you plenty of real estsate leads.