First-time homebuyers have accounted for about one in every two homes sold in Canada in the past two years, representing more than a quarter of a million sales per year across the country, says a new report.
A housing report by the Altus Group, an economic consulting firm, says the majority of firsttime buyers are in the under-35 age group, with the 25-to-34 segment alone accounting for six out of every 10 first-time buyers.
Many first-time buyers are more "mature" with about one in four aged 35 to 49 years old.
The report says more than onefifth of first-time buyers purchased a newly built home. Of these, about one in three opted for a condominium unit.
About one in four recent firsttime buyers was a single-person household.
"The average house price for a recent [first-time buyer] in Canada was about $273,000. This is about four times the average annual household income of about $69,000 -up substantially from the price/income ratio of 2.7 per cent for (first-time buyers) in the 2001-02 period," says the report.
First-time buyers have taken advantage of various means to help them get into home ownership: minimal down payments, longer amortization periods to reduce regular payments, variable rate mortgages to reduce regular payments, RRSPs for down payments and help from family.
"The buoyant population in the key first-time buying age groups is positive for demographic demand from this market segment," the Altus Group said.
"However, given prevailing house-price levels and the cumulative impacts of more stringent mortgage insurance criteria, access to the market has become more restricted for these potential [first-time buyers] -which is expected to keep proportionately more of them on the sidelines until there are affordability improvements."
© Copyright (c) The Province