First-time buyers are major drivers of the current housing market, according to the Canadian Association of Accredited Mortgage Professionals’ (CAAMP) 2015 Spring Survey, A Profile of Home Buying in Canada.
This group, which ranges from 25 to 34 years old, bought 45 per cent of the 620,000 homes sold in the past 27 months, using their own or their co-buyers’ personal savings, while 18 per cent still rely on immediate family members.
“There is intense interest in the Canadian housing market, especially from first-time buyers,” said Jim Murphy, president and chief executive officer of CAAMP. “CAAMP’s spring report focuses specifically on this group and we can say with confidence that first-time homebuyers are some of the most engaged, enthusiastic and well-researched groups in the market.”
Among this group, condos placed second best, as 22 per cent bought them, compared to 47 per cent who favoured the purchase of a single detached home. Location-wise, more first-time buyers bought condos in B.C., at 31 per cent, than in Ontario at 21 per cent.
Other survey results found that first-time buyers, half of whom earn below $80,000, are spending an overall average of $308,100 and an average high of $336,000 on condos. They are also spending $67,000 on a down payment, which represents 21 per cent of the average purchase price.
Reasons for buying include the desire to stop renting, saving enough money and life changes, such as marriage, moving and financial situations. Buyers also perceive their first purchase as a means for financial security and pride of owning a home.