The rush to beat interest rates

First-time home buyers in major Canadian markets attempt to get in ahead of higher interest rates, says RE/MAX

Driven by the threat of higher interest rates down the road, first-time buyers are contributing to strong upward momentum in residential housing markets across the country, according to a report released today by RE/MAX.

"Despite homeownership rates approaching 70 per cent, there is clearly room for growth as entry-level buyers make their moves from coast-to-coast, undeterred by higher housing values and changes to lending criteria" says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.

The RE/MAX First-Time Buyers Report, highlighting trends and developments in nineteen major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points. 

Just over 30 per cent of markets are reporting sales in excess of 2010 levels as a result, while almost 70% have experienced an upswing in average price. 

Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15%), Greater Vancouver (up close to 12%), and Winnipeg (up just over 11%).  With an average price hike of close to 20% year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (8%), Quebec City (7%), Winnipeg (close to 7%), GreaterToronto (5%), and Greater Montreal (5%).

Find The complete story in the Canada Real Estate Magazine.