Posted 4.10.13 @ 12:30
Even if you’re not buying a home for the first time, it’s important to understand the importance of first-time homebuyers on the Canadian real estate market. First-time home buyers aren’t buying in the major markets, they are looking at places like Oakville! Many Gen-X’rs, Gen Ys and others are looking to their future in the suburbs. With more and more trying to escape the city (I don’t want to raise my kids in a condo.), the future will happen here!
First Time Homebuyers are Important to the Market
It’s called the “Trickle Up Effect”; if people don’t buy homes, current homeowners have no choice but to stay where they are. If young people are hoping that prices will fall, or don’t see the point in buying right now, they’re just not going to buy a house. But young people aren’t the only first-time buyers right now; many Baby Boomers are buying homes for the first time too!
It’s not just about money though. People want to make sure that their next move is the right one; after all who wants to keep picking up and moving all the time? It’s okay to be picky, especially when you’re first-time homebuyer!
New Mortgage Rules to Blame?
Some say that the new mortgage rules that came into effect in July of last year are to blame. These new rules can make it difficult for some people to buy homes. Under the old rules, people had a maximum of 30 years to repay their mortgage; now the numbers have been chopped down to 25 years. Five years doesn’t seem like a long time, this actually increases the average monthly payment from home buyer. The higher the monthly payment, the more income you need to cover, which kicks many young people out of buying a home just yet.
High Prices Also Killing Sales
In some areas the median home price is over $500,000, and for many buying a home is just out of reach. Many are putting off buying a home in the hope that prices will fall down to a manageable level. The Bank of Montréal recently dropped mortgage rates in the hopes of tempting young buyers will to buy a house.
The median prices across the GTA have risen in the double digits over the last 10 years. Even if you’re not looking for luxury Oakville real estate, you’ll still be able to find a great home here.
What Makes Oakville Different?
Oakville is a convergence point. Here you’ll find young professionals, retirees, exclusive communities, great neighborhoods for families, and everything in between. Instead of just trying to find a house, here you’ll find a home, a community, and a great place to live.
So why wait? Give us a call today and see the difference that the Goodale Miller team can make when you’re shopping or selling a home. We have years of experience helping people just like you find the home that’s right for them.