First –time buyers back in the market

As realtors® in many Toronto neighbourhoods are finding, first-time buyers are back in the market.
Royal LePage has just completed a survey that found low mortgage rates and lower home prices are causing more first time buyers to enter the market, or at least consider doing so. Concerns about job security and, to a lesser extent, the state of the economy are mitigating factors.
Potential buyers were asked to rank their top incentives for purchasing a first property. While lower home prices and interest rates took the top two rankings, the third most popular incentive was the First-Time Home Buyers’ Tax Credit. The recently introduced Home Renovation Tax Credit was not ranked as highly. The increase in the amount that can be deducted from an RSP under the Home Buyer’s Plan was not a big factor either.
There were significant response differences across Canada. In the west, where high housing prices have kept some buyers out of the market in recent years, the drop in housing costs was much more of a determining factor than in Quebec and Atlantic Canada, where housing prices have been more stable.
In the Greater Toronto Area, condominiums continue to attract many first-time buyers because of their relative affordability. Also most are located where first-time buyers want to be- close to work, entertainment, and transit. However, the market has also picked up considerably for “starter houses”- bungalows and semi-detached homes in the less expensive neighbourhoods.
For more information, see www.royallepage.ca.