Posted 4.30.14 @ 9:55
According to a recent Bank of Montreal report, first time home buyers in Toronto are planning to spend at least $400,000 on a new home this year; compared with $300,000 last year, that’s quite a jump!
The report looked at homebuyers buying in the Big Three markets of Vancouver, Toronto and Calgary. Buyers looking for a home in the GTA had the second highest budget; buyers in Montreal expect to spend $237,000 on their first home; $363,000 in Calgary and $510,000 in Vancouver.
How Much Are You Going to Spend?
Both the GTA and Vancouver have a vibrant, thriving luxury home market, but it’s good to know where you’re at and what you want to spend before you go even look at your first house.
When you work with us we’ll help you research neighbourhoods, explore your options and find the home that’s right for you.
Many Scrimping and Saving for The Best Home
30% of the sample group surveyed in the Bank of Montreal report said that they were going to receive help from friends or family to buy their first home. Another two-thirds said that they were making significant sacrifices to buy their first home.
40% of the sample group also said that they were planning to save through the end of the year when they thought that “housing prices would cool down”. The BMO report showed that rising housing prices had cooled significantly in many of the major markets.
Even luxury home buyers are working on making their first home purchase the best one.
Spring Thaw Demand Picking Up for March
Tours of homes are up 11% in March (almost double that for showcase luxury homes), with offers increasing 20% month over month across Canada and the top 3 markets.
Home tours are picking up (though it’s important to remember that many buyers have put off going to open houses after the terrible winter we’ve experienced), and customer signing offers jumped by 20% month on month.
That means more people are ready to buy. It could be the amount of inventory increasing, that home prices are finally beginning to stabilize - it could even be the fact that the threat of impending doom from snow, ice and disastrous winter weather has finally passed.
Whatever it is, people are ready to buy.
Luxury Homebuyers Spending 2-3x on First Home
Luxury homebuyers on the other hand are spending 2-3x on their first showcase home compared with the “average” homebuyer. But the average price across the GTA for a luxury home is 1.5x the $450,000 that most first time homebuyers are willing to spend.
But again, it all centers around what you need, how much you’re willing to spend and where in the GTA you want to live. Oakville has everything from luxury starter homes to multi-million mega mansions, just about anyone can find the home that they want.
Interested in making Oakville your home? Give us a call today and see what we can do for you.
You can also view our great selection of oakville luxury homes for sale here! http://www.goodalemillerteam.com/Homes.aspx