Meanwhile, despite fewer first-timers, average prices keep making record highs. It’s hard to kill demand with sub-3% mortgage rates being so plentiful (albeit, no longer on fixed terms over four years).
Moreover, while some expected new listings to be flooding the market by now, that’s clearly not happening on a national basis. Most homeowners refuse to be scared into selling by all the housing bubble and mortgage rule talk. Nationwide inventories have been dropping for three months in a row.
Other stats from BMO’s release:
- 2012 mortgage rules made one-third of first timers in pricier B.C. wait longer to buy
- The average price first-timer buyers expect to pay for their home: $300,000
- The average first-time buyer’s down payment: $48,000 (16%)
As noted in April, we still have trouble believing that last number ($48,000) because:
- Past data from Genworth found the most common down payment for first-timers was just 5.0% to 9.9%
- RBC’s recent Homeownership poll found that 62% of fledgling buyers planned to put down 10% or less
- CAAMP found that only 11% of renters had $30,000+ for a down payment.
Rob McLister, CMT