According to a report released today by Royal LePage Real Estate Services, Canadians who are considering purchasing their first home are primarily motivated by lower home prices and very low interest rates, but some require confidence in the economy and their employment prospects before they will enter the market.

• 86% of potential first-time buyers say low interest rates make them more likely to purchase a home;
• 81% cite lower housing prices as a motivating factor;
• 76 % cite job security;
• and 64% say a stable economy is an important factor in their decision to buy.

Potential buyers were asked to rank their top incentives for purchasing a first property. These are the top four incentives found, in this order:

1. Lower home prices
2. Lower interest rates
3. First-Time Home Buyers’ Tax Credit.
4. The recently introduced Home Renovation Tax Credit for 2009 was cited by 42 per cent of potential first-time buyers as either ‘very likely’ or ‘somewhat likely’ to impact their purchasing decision.

“Our survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.” Said Phil Soper, president and chief executive of Royal LePage Real Estate Services.

Across the country, potential first-time homebuyers agreed that affordability was their top consideration, however the survey also revealed differences amongst buyers in various regions of Canada. [Read more...]