Young Alberta buyers most confident
Young Albertans buying their first homes have the most confidence in their real estate market, according to a BMO survey.
More than 50 per cent of first-time buyers in the province expressed optimism and believe now is a good time to buy. Forty-two percent of respondents in both British Columbia and the Prairies are fairly optimistic, according to the survey conducted by Pollara Strategic Insights.
However, a mere third of Ontarians believe jumping into the market now is a good idea.
“While first-time homebuyers believe that market conditions are favourable for buyers, it’s important to make sure that carrying costs are sustainable,” advised Hassan Pirnia, BMO’s head of personal lending and home financing products.
Forty-five percent of new homebuyers are looking in Canada’s three most expensive markets—Toronto, Vancouver and Montreal—but coming up with the money is a challenge. Twenty-six percent of respondents said saving up a 5 per cent down payment will be a major challenge, while 39 per cent called it a minor challenge.
Only 14 per cent of new homebuyers said they are prepared to buy a home, but 55 per cent believe they will be ready in a couple of years.
The survey also revealed that the overwhelming majority of first-time buyers will carry debt into their home purchase, as only 38 per cent say they will be debt-free.