Quebec’s 1st time homebuyers sidelined
Experienced buyers are expected to dominate a softer Canadian resale market in the coming months, a trend that could hit sales in Quebec which has the highest proportion of first-time buyers in the country.
Forty per cent of buyers were purchasing a home for the first time in Quebec, compared to 30 per cent nationally, a RE/MAX survey published today said. Tighter mortgage rules introduced last summer have led to plummeting home sales in Greater Montreal on lower-end properties which attract first time buyers, real estate board statistics show.
“There’s no question that first-time buyers are experiencing a period of readjustment,” explains
Gurinder Sandhu, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic
Canada in a press release. “While affordability took a hit in 2012, homeowners with considerable equity remain confident and well-positioned.
“They will be the driving force fuelling the bulk of home sales in the months ahead. ”
December data to be released this morning by the Greater Montreal Real Estate Board are expected to show sales dropping around 15 to 20 per cent.
According to the Re/Max Homebuying trends survey, only 30 per cent of Quebecers were planning to buy in urban areas, compared to 35 per cent nationally.
Not surprisingly, fewer Quebecers can afford to pay the higher prices for urban real estate. According to the survey, 14 per cent of Quebecers reported earning $100,000 and over, compared to 24 per cent nationally.