Did You Know
First-time buyer tenacity boosts home sales
Higher housing values, tight inventory levels, and all-out bidding wars have yet to deter first-time buyers in their quest to realize homeownership with buyers finding the means necessary to enter the market. The RE/MAX Affordability Report, which highlights first-time buying activity and trends in 13 housing markets across the country, found that substantial price increases have had little impact on buyer intentions.
Low interest rates and solid economic performance have played a role in providing purchasers with the confidence to go out and buy their first home. Price increases are a reality in the marketplace. One year can set you back – from location to house size – and your dollar just doesn’t have the same purchasing power.
Innovative financing has allowed a growing number of first-time buyers to enter the marketplace. With most prepared to up the ante to realize “the dream of homeownership”, unique new mortgage products with longer amortization periods are helping to make mortgage payments easier to carry. Family wealth and inheritance are also factors influencing home-buying activity. Some first-time buyers are digging into RRSPs and borrowing money from parents, while others are looking to offset carrying costs through in-law suites, now factored into debt service ratios by a growing number of lending institutions.
Despite a decade of year-over-year price increases, compounded by challenging market conditions this year, entry-level buyers continue to be a driving force in real estate. Their undaunted enthusiasm is expected to translate into sales at or ahead of last year’s record levels in the Spring.