Mortgage rates motivate first-time homebuyers
First-time homebuyers are a major contributor to Canada's robust real estate market, and a recent report from RE/MAX suggests that may be because people want to take advantage of low interest rates while they still can.
According to the company's first-time buyers report, while they aren't rushing into the market, first-time homebuyers are looking to buy soon because the market is balanced and interest rates are low.
Elton Ash, regional executive vice president for RE/MAX Western Canada, said consumer confidence is also affecting purchase decisions.
"With the Canadian economy on firmer footing overall, residential real estate is well-positioned moving into the traditionally busy spring market," Ash said.
The report found that affordability was a concern for first-time homebuyers as well. One of the more expensive places to buy a home is Vancouver, with an average home price of $780,819. The average price of Montreal and Greater Toronto homes were $354,549 and $442,978, respectively.
Home prices tend to affect how first-time buyers can afford other necessary purchases, like home insurance. New homeowners may want to speak with an agent about their coverage, since many have not had any purchased of property insurance before.