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First-time home buyers shrinking portion of market: Ipsos-Reid

The proportion of first-time home buyers in the B.C.'s residential real estate market is dwindling, according to a study by Ipsos-Reid. Currently, about 29% of home buyers are first-time buyers, down from 38% in the first half of 2009.

The proportion of first-time home buyers in the B.C.'s residential real estate market is dwindling, according to a study by Ipsos-Reid.

Currently, about 29% of home buyers are first-time buyers, down from 38% in the first half of 2009.

Rapid recovery of housing prices, particularly in Metro Vancouver, is again pushing first-time buyers out of the market, rather than any decline in interest.

The study suggested people believe the province is slowly turning into a seller's market with 53% of B.C. residents saying now is a good time to sell a home, up from 14% in the same period a year ago.

On average, British Columbians are estimating housing prices will rise 4.6% in the coming year with 57% predicting prices will rises compared with only 12% who believe prices will fall.

RBC Economics reported Monday that housing affordability in B.C. continued to decline in the fourth quarter of 2009. The proportion of pre-tax income required to own a detached bungalow rose 1% to 62.3% and the proportion of income required to own a standard townhouse rose 0.8% to 48.9%.

The cost of owning a standard two-storey home fell slightly 0.2% to 70.2% of household income. The most affordable option for housing in B.C. remain standard condominiums, which require about 34.2% of household income.