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First - time home buyers driving force in Canada's residential real estate markets, says RE/MAX

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Firsttime buyers driving force in Canada’s residential real

estate markets, says RE/MAX

Mississauga, ON (March 11, 2009) ‐‐ A report released today by RE/MAX confirms that entrylevel

purchasers are now the engine driving homebuying activity in almost every major centre in Canada.

The 2009 RE/MAX FirstTime Buyers Report, highlighting firsttime buying activity in 32 residential housing

markets across Canada, found that improved affordability is prompting many firsttime buyers to get off the

fence, out of the rental, and into the market. While a sense of caution still prevails, more and more firsttimers

are finding it hard to pass up the chance to become homeowners in today’s buyercentric real estate

climate. Increased inventory and longer days on market coupled with the lowest lending rates ever are

presenting opportunities that have not been seen in almost a decade.

“While the current economic crisis has caused some firsttime buyers to either take it slowly or apply the

brakes, home ownership remains a top priority for those who are able to take advantage of reduced carrying

costs, rock bottom interest rates and lower house prices,” explains Michael Polzler, Executive Vice President

and Regional Director, RE/MAX OntarioAtlantic Canada. “Affordability has greatly improved and buyers are

firmly in the drivers’ seat in just about every market we surveyed. The new reality is that homeownership

remains well within reach for most firsttime buyers.”

Although the year got off to a slow start, February home sales were well ahead of those reported in January.

The upward trending is expected to continue as more and more firsttime buyers enter the market in the

weeks ahead. The flurry of activity in the lowerend may also serve to kickstart sales in the midtoupper

end of the market, which have, as expected, been relatively sluggish in recent months. While inventory and

days on market was up virtually across the board, it’s noteworthy that several markets reported tighter

conditions in the lower end of the market, where demand and buyer activity remains quite healthy.

more –

RE/MAX FirstTime Buyers Report…2

“Canadian markets from coasttocoast are ripe for a reawakening as the weather warms up,” says Elton Ash,

Regional Executive Vice President, RE/MAX of Western Canada. “Firsttime buyers seem more acclimatized

to economic factors, even though the barrage of bad news continues to flow. Those who are secure in their

jobs, have accumulated good down payments, and have acceptable credit ratings are continuing to venture

forward, undeterred by tighter lending criteria.”

According to the RE/MAX Report, buyers are clearly in control in most Canadian markets. Of the 32 markets

surveyed, 22 (69 per cent) remain firmly in buyer’s market territory. These include Vancouver, Surrey, Port

Coquitlam, Chilliwack, Kelowna, Victoria, Edmonton, Calgary, Saskatoon, Regina, Ottawa, Peterborough,

LondonSt. Thomas, Niagara Falls, Mississauga, Metro Toronto, Northern GTA, Kingston, Windsor, Hamilton

Burlington. Barrie, and HalifaxDartmouth. Ten (31 per cent) report more balanced conditions: Winnipeg,

KitchenerWaterloo, Sudbury, North Bay, St. Catharines, Saint John, Moncton, Fredericton, St. John’s, and

Charlottetown.

Forty per cent of markets offered singledetached homes priced under $200,000, including Charlottetown,

Saint John, Moncton, Peterborough, Niagara Falls, St. Catharines, Windsor, Fredericton, HalifaxDartmouth,

London, North Bay, Kingston, Saskatoon and Winnipeg. More than twothirds (71 per cent) offered

condominiums starting under $200,000, (Moncton, Fredericton, HalifaxDartmouth, Sudbury, North Bay,

Peterborough, Mississauga, Burlington, Niagara Falls, St. Catharines, KitchenerWaterloo, London, Windsor,

Surrey, Chilliwack, Victoria, Kelowna, Edmonton, Saskatoon, Regina, and Winnipeg).

The most affordable markets for detached homes, based on starting prices are: Moncton ($115,000),

Charlottetown ($120,000), and Saint John ($130,000) in Eastern Canada; Windsor ($75,000), Niagara Falls

($119,000), and St. Catharines ($125,000) in Ontario; Winnipeg ($185,000), Saskatoon ($190,000), and Regina

($210,000) in Western Canada.

RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its

more than 670 independentlyowned and operated offices across the country. The RE/MAX franchise

network, now in its 36th year, is a global real estate system operating in more than 70 countries. Over 6,800

independentlyowned offices engage nearly 100,000 member sales associates who lead the industry in

professional designations, experience and production while providing real estate services in resident,

commercial, referral, and asset management. For more information, visit: www.remax.ca

 

For more information, please contact: Christine Martysiewicz, RE/MAX OntarioAtlantic Canada,

905.542.2400 Eva Blay, Point Blank Communications, 416.781.3911

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