Friday, April 4, 2014
Average age of first time homebuyers on the rise, says BMO
The average age of first-time homebuyers in Canada is on the rise but they remain the youngest in Calgary, according to a survey released Thursday by BMO Bank of Montreal.
The report said the average age is 32 years in Calgary, 34 in Alberta and 36 in Canada, while the majority of current homeowners purchased their first home before they were 30.
“A number of factors and trends are causing young adults to push back major life transitions. When buying a first home, one of the most evident is rising real estate prices,” said Laura Parsons, mortgage expert with BMO in Calgary.
“Compared to some other major city centres in Canada, first-time buyers in Calgary have a number of advantages when it comes to getting into the housing market, including higher than average incomes, and a housing market that is still relatively affordable.”
According to the Calgary Real Estate Board, year-to-date until April 2, the average MLS sale price in the city was $477,882, up 5.19 per cent from the same period last year, while the median price of $425,000 has increased by 6.78 per cent.
The BMO report for Calgary first-time buyers said: the majority are single (54 per cent), 30 per cent are married, 12 per cent are in a common-law relationship, and four percent are separated, divorced, widowed or preferred not to say; their average income of $71,000 is the highest in Canada; and they expect to live in their first home for 16 years.
In Alberta, the report said: the majority are single (55 per cent), 26 per cent are married, 11 per cent are in a common-law relationship, and eight percent are separated, divorced, widowed or preferred not to say; their average income of $69,000 is the highest of all provinces; and they expect to live in their first home for 16 years.
BMO said the average home price in Canada has risen 83 per cent over the past 10 years. The report said four in 10 first-time buyers cited rising real estate prices as the number one reason for a delay in their home-buying timeline, while 60 per cent of all first-time buyers have been delayed by other factors as well.
The report on Canadian first-time buyers found: the majority are single (50 per cent), 22 per cent are married, 19 per cent are in a common-law relationship and 11 per cent are separated, divorced, widowed or preferred not to say; their average income is $55,000; they expect to live in their first home for 15 years; and the average number of houses they plan to own is 1.5.
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