First-time homebuyers are being lured into the real-estate market this spring by falling prices, lower interest rates, a large selection of homes to choose from and new government incentives. Century 21 Miller Real Estate has shown a drastic increase in the number of real estate transactions since the beginning of the year and much of that can be attributed to the number of first timers not wanting to miss the boat on this great opportunity to get on the property ladder near the bottom rung.
Many property virgins are using the low interest rates and falling housing prices to get out of their rentals and make a purchase. Many first timers are realizing that their monthly mortgage payments will work out to be similar to what they are paying their landlords in rent.
Buyers definitely have an advantage in this market and more and more people are seizing this great opportunity. People used to worry about competing offers and having to buy quickly often resulting in buyers paying much more for the home than they would have liked. Now, people are able to take more time, thoroughly investigate all available houses and go for second, third or even fourth viewings before they make a decision.
Ottawa recently announced new tax credits of up to $1,350 for homebuyers to renovate their house or cottage. It also increased the amount first-time homebuyers can withdraw from their RRSPs from $20,000 to $25,000, and implemented a tax credit for first-timers of up to $750 to help cover closing costs.
Interest rates are also driving first timers to buy. With interest rates averaging around 3.6%-3.7% on a 5 year fixed mortgage, many are looking at their monthly expenses and figure they can’t lose.
For more information on buying or selling real estate in Burlington, Hamilton or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I’d be glad to answer any questions to accommodate all of your real estate needs. I can also be reached at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.
I look forward to hearing from you!