Inside the Mind of Canadian Homebuyers
The 2011 TD Canada Trust First-Time Homebuyers Report released today finds that many Canadians will be buying their first home independently (rather than with a co-purchaser). In fact, nearly six-in-ten men (57%) will buy on their own, along with 33% of women.
While people buying independently don’t have to compromise with anyone about the features, location and type of home they’re looking for, Canadian first-time buyers realize they may have to make concessions because the perfect home may not exist – or at least not be in their price range. Encouragingly, price is the factor Canadians are least willing to compromise on.
First-time homebuyers are most likely to say they would not compromise on:
- Price (50%)
- Number of bedrooms (43%)
- Proximity to work (39%)
- Size of backyard/garden (41%)
They’re most willing to make concessions about:
- Proximity to recreational activities (82%)
- Features of the home (82%)
- A renovated kitchen and proximity to shopping (both 79%)
Rental Vacancy Rates Continue to Drop
It’s increasingly difficult to find rental housing across the country, as a lack of new inventory and a surge of would-be renters pushed the national vacancy rate lower.
CMHC said Thursday that the vacancy rate for Canada’s rental stock was 2.5% in April 2011, compared to 2.9% in 2010.
“Recent immigrants tend to rent first before becoming homeowners,” said Bob Dugan, Chief Economist at CMHC. “Condominium completions moved lower in the past months, while rental apartment unit completions remained relatively stable. Overall demand for rental apartment units increased faster than supply for this type of housing.”
The cities with the lowest vacancy rates were Winnipeg and Regina (0.7%), Quebec (1%), Toronto (1.6%) and Kingston (1.7%). The cities with the highest vacancy rates were Windsor (9.4%), Kelowna and Abbotsford (6.6%), and Charlottetown (4.9%).
Positive Outlook for Canada’s Economy Continues
Canada’s economy has been a frontrunner in the race to expansion with real GDP standing 2% above its pre-recession peak and posting a 3.9% annualized rate gain in the first quarter of 2011.
Aided by a projected continued recovery in the US, Canada’s economy is forecast to expand by 3.2% in 2011 and 3.1% in 2012, according to the latest Economic Outlook released late last week by RBC Economics.
“With more than 50% of Canadian exports linked to natural resources, higher commodity prices have provided a substantive and positive boost to our economy,” said Craig Wright, Senior Vice President and Chief Economist, RBC. “Higher prices mean higher domestic income growth.”
Courtesy of an increased demand for commodities and a widening spread in short-term interest rates, the Canadian dollar broke parity with the US dollar in early January. Canada’s currency remains strong and is likely to hold its current range for the remainder of 2011.
July 6th, Mortgage Interest Rate Sheet
Courtesy of:
Michael Hatch
Mortgage Agent Lic#M08008114
Integrity Financing – Dominion Lending Centres
Tel:613.203.2030
Email: info@ottawashometeam.com
Web: www.ottawashometeam.com