First-time buyers turn to family for help
First-time buyers are increasingly getting help from parents to be able to buy a home. Genworth has unveiled the results of its survey of 1,800 first-timers in the 25-40 age group. It found that almost a third were able to get a mortgage thanks to parents helping with a down payment or acting as guarantors on the loan. Five per cent used cash from wedding gifts and one per cent used an inheritance. Detached family houses accounted for more than half of the purchases, although in Toronto
and Montreal that number fell to less than 30 per cent. The typical price of first homes was $293,000 with a 12 per cent downpayment. The survey’s respondents had all bought a home within the past 24 months, but a large percentage of respondents (39 per cent) were concerned about being able to meet mortgage repayments at the end of each month.
Consumer confidence stable but real estate index slips
The latest measure of Canadian consumer confidence has remained stable, according to Bloomberg/Nanos' latest research. Overall confidence was down to 55.04 last week from 55.59 the week before with personal finances, including their mortgages, and the Canadian economy showing stronger sentiment. The sub-indexes on job security and the real estate market were slightly lower. When asked if property prices would be higher in six months 35.64 per cent felt they would, 17.74 per cent said lower and 43.41 per cent believed they would stay the same. Confidence was higher in the Prairies and B.C. and among those aged 50 or above.
More Americans buying Vancouver homes
The number of Americans buying homes in Vancouver
is booming, according to a new report. Sotheby’s International Realty Canada says that there is also more interest from Europe and the Middle East, although Chinese buyers remain the single largest group of international buyers, accounting for 60 per cent of all foreign transactions. American buyers are increasing faster than other nationalities as the low interest rates and dollar exchange rates make now a good time to buy. James Upton, a real estate agent at Re/Max Crest Realty Westside told the Financial Times
that condos are a particular target for Americans: “Condominium prices haven’t kept pace with single-family homes, and that’s made the sector ripe for investment, especially when you consider that a stronger U.S. dollar takes about a third off the price.” He said that local buyers were also interested in condos, especially older buyers who are downsizing.
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