Lower housing prices and low interest rates are enticing first-time home buyers into the market, according to a new Royal LePage survey.
The survey of people looking to buy their first home in the next three years found that interest rates and lower housing prices were the top two motivating factors drawing them into the market. Job security and economic stability were other key considerations for homebuyers.
First-time home buyers in B.C. were the most motivated by low interest rates and increasing affordability: about 96% said lower prices are prompting them to buy; 92% pointed to low interest rates.
According to the survey, Atlantic Canadians were the least motivated to buy based on declining interest rates. The report noted that the housing market in Atlantic Canada remains stable, and 43% of first-time buyers said job security was a major factor in their decision to buy.
In B.C., female buyers appear to be leading the market. The report found that 60% of first-time buyers in the province are women. About 40% of prospective buyers intend to buy a "fixer-upper" and 80% of B.C. respondents said they would take advantage of the federal government's home renovation tax credit upgrading their homes.
Most entry-level buyers in B.C. said they were looking to spend $300,000 or less for their first home, which would likely be a condominium or townhouse. Less than a third (31%) said they would spend between $300,000 and $500,000.
According to Royal LePage's home price survey, average first-quarter prices for detached bungalows ranged from $260,000 in Victoria to $540,000 in Vancouver East and $950,000 in Vancouver West. Condos prices ranged from $175,000 in Victoria to $280,000 in North Vancouver and $625,000 in Vancouver West.