Wednesday, December 13, 2017 15:08

2011 REMAX First Time Buyer Report

remax ballon

This week Remax released their 2011 First Time Buyer Report. The report outlines some key market characteristics across Canada.

The report surmizes the Canadian housing market so far in 2011 with a particular focus on First Time Buyers.

 

GTA

In the GTA first time home buyers and move-up buyers have bolstered the market, with bigger numbers limited by lack of inventory.   In February 14 GTA districts saw sales to list ratios of 100%!  Along with this the days on market numbers have fallen from 36 to 27 and consequently the average sale price has gone up.

The Report notes that for first time buyers in Toronto freehold home opportunities basically don’t exist under $300,000 – which is about 2/3rds of the average home price.

By contrast 63% of condos have sold for under the $300,000 mark making them the primary choice for First Time Buyers in the GTA.

The mortgage on a $300,000 condo with a 5% down payment based on a rate of 3.89% and a 25 year amortization would be about $1523 a month.

By contrast the average home price in the GTA is $442,978 which with the same mortgages terms would require a monthly payment of $2249

Given the threat of rising interest rates and the improving economy the report notes that homebuying should continue unabaited for the remainder of the year

 

Hamilton – Burlington

The Hamilton Burlington market is hot as usual. 2011 numbers are 34 sales off the near record  level of sales that were reported last year.

Unlike last year when inventory was more available there has been some upward pressure on list prices as fewer homes are on the market.

18% of Freehold sales and 43% of condo sales have sold for less than $215,000 which points to first time buyers representing a large portion of the market thus far this year.

Burlington property values are significantly higher than in Hamilton. A freehold home in Burlington will cost between $275,000 and $325,000 in Burlington while in Hamilton a similar property will cost between $175,000-$225,000

The difference in your monthly mortgage payment between the average freehold Hamilton property and Burlington would be about $507 a month.  This equates to about $6000 a year more in Burlington than in Hamilton.

Its good to note that Hamilton property taxes have run away lately and are quite high so some of this may be equalized when you factor that in.

 

The Hamilton Burlington market is expected to be stable for the remainder of 2011.

 

To view the full report see LINK.