Royal LePage’s First-Time Homebuyers’ Report

For first-timers, affordability is the driving force for purchasing a home

What’s most likely to motivate your firsttime buyers to take the home ownership plunge now? Lower, more affordable prices!

Royal LePage’s First-Time Homebuyers’ Report 2009 highlights affordability and job security as the two most important factors for purchasing a property for Canadian first-timers.

Improved affordability “a powerful driving card” across the country

“While these consumers appreciate government incentives such as tax credits, greater RSP deduction limits and rebates on home renovations, it is markedly improved affordability that is proving to be the powerful drawing card,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. While potential first-time homebuyers agreed that affordability was their top consideration, the survey also revealed differences amongst buyers in various regions of Canada.

Low interest rates offer added incentive to B.C. buyers

In provinces such as British Columbia where high housing prices have kept some buyers out of the market in recent years, 92% of potential first-time buyers are now motivated by low interest rates, and 96% say lower home prices are likely to prompt them to buy.

Job security, interest rates less important in Atlantic Canada

In Atlantic Canada, where local economies have been resilient in the face of a worldwide recession and housing markets remain stable, 43% of first-time buyers say that job security is a factor in their decision to buy. However, job security is an important motivator in the west. 84% of first-time buyers in British Columbia and Alberta said job security will influence them.

In addition, Atlantic Canadians were less likely to be swayed by declining interest rates than other Canadians. Only 72% said lower interest rates will likely prompt a buying decision, compared to 86% of Canadians overall.

Tax credits also sweetening the pot for first-timers

How influential to your first-time buyers are government inducements like the First-Time Homebuyers’ Tax Credit and the Home Renovation Tax Credit?

The most popular incentive for Canadians was the First-Time Home Buyers’ Tax Credit. In addition, the recently introduced Home Renovation Tax Credit for 2009 is also influencing first-timers, especially those in Ontario and Quebec. While the credit was cited by 42% of potential first-time buyers across Canada as either ‘very likely’ or ‘somewhat likely’ to directly influence their purchasing decision, it was a much stronger motivator in Ontario and Quebec.

Find out more about what’s influencing first-time buyers

If you require more information or would like to obtain a copy of the report, please contact Tammy Gilmer, Director of Public Relations & National Communications at (416) 510-5783 or via email at

tgilmer@royallepage.ca

Or to view the press release and report, go to: www.royallepage.ca

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