Like everything in life and business, an injection of fresh blood into the real estate market is a good thing. So it was last year, when many more first-time home buyers jumped into the market than the previous year. Recently released survey information from the Canadian Mortgage and Housing Corporation (CMHC) indicates that in 2009, 43% of Canadian home buyers were first-timers - up from 36% in 2008. Many of these first-timers were actually very young adults; 35% of all Canadian home buyers last year were between the ages of 18 - 34.
Other interesting findings in the 2009 CHMC data include:
?66% bought a home that was more expensive than their previous residence; 22% bought a less expensive home
?59% bought a larger home; 24% downsized
?55% purchased a single-detached home; 18% bought an apartment condo
?42% of those intending to purchase, plan to make a down payment of 20% or more
The resale home market benefited last year, as indicated by this CMHC data: 74% bought an existing home; 22% bought new construction.
The More Information, the Better
If you are a newbie in the real estate market - or even if you’re not - in this time of complicated mortgages and a changing real estate landscape, it can only be in your best interest to arm yourself with the most recent, relevant information. Aside from seeking the help of a professional mortgage broker (always a good idea), there are resources out there that will steer you in the right direction.
For example, the Financial Consumer Agency of Canada has produced 4 new tip sheets that are particularly aimed at first-time homebuyers, at their website, moneytools.ca.
The FCAC publishes and distributes dozens of free tip sheets and brochures for Canadian consumers, including those looking to buy and/or sell homes. The latest of these concern:
- Real Estate Fraud
- Planning a Housing Budget
- Choosing an Amortization Period
- Understanding Variable Interest Rate Mortgages
FCAC Commissioner Ursula Menke says, ‘buying a home is very likely to be the most important investment you will make in your lifetime... it is essential to fully understand all of the costs involved” - the same advice I’ve shared with my readers in this blog before.