The deal on real estate

Entry-level purchasers are now the engine driving home-buying activity in almost every major centre in Canada, according to a recent report released by RE/MAX.

The 2009 RE/MAX First-Time Buyers Report, highlighting activity in 32 residential housing markets across Canada, found that improved affordability is prompting many first-time buyers to get off the fence, out of the rental, and into the market. While a sense of caution still prevails, more first-timers are finding it hard to pass up the chance to become homeowners in today's buyer-centric real estate climate. Increased inventory and longer days on market, coupled with the lowest lending rates ever, are presenting opportunities that have not been seen in almost a decade.

While the current economic crisis has caused some first-time buyers to either take it slowly or apply the brakes, home ownership remains a top priority for those who are able to take advantage of reduced carrying costs, rock bottom interest rates and lower house prices. Affordability has greatly improved and buyers are firmly in the drivers' seat in just about every market surveyed. Homeownership remains well within reach for most first-time buyers.

Although the year got off to a slow start, February home sales were well ahead of those reported in January. The upward trend is expected to continue as more first-time buyers enter the market in the weeks ahead. The flurry of activity in the lower-end may also serve to kick-start sales in the mid-to-upper end of the market, which have, as expected, been relatively sluggish in recent months. While inventory and days on market was up virtually across the board, it's noteworthy that several markets reported tighter conditions in the lower end of the market, where demand and buyer activity remains quite healthy.

Canadian markets are ripe for a reawakening as the weather warms up. Firsttime buyers seem more acclimatized to economic factors, even though the barrage of bad news continues to flow. Those who are secure in their jobs, have accumulated good down payments, and have acceptable credit ratings are continuing to venture forward, undeterred by tighter lending criteria.

According to the report, buyers are clearly in control in most Canadian markets. Of the 32 markets surveyed, 22 remain firmly in buyer's market territory.

These include Vancouver, Surrey, Port Coquitlam, Chilliwack, Kelowna, Victoria, Edmonton, Calgary, Saskatoon, Regina, Ottawa, Peterborough, London-St. Thomas, Niagara Falls, Mississauga, Metro Toronto, the northern Greater Toronto Area, Kingston, Windsor, Hamilton-Burlington, Barrie, and Halifax- Dartmouth. Ten report more balanced conditions, including Winnipeg, Kitchener-Waterloo, Sudbury, North Bay, St. Catharines, Saint John, Moncton, Fredericton, St. John's, and Charlottetown.

Forty per cent of markets offered single-detached homes priced under $200,000, including Charlottetown, Saint John, Moncton, Peterborough, Niagara Falls, St. Catharines, Windsor, Fredericton, Halifax- Dartmouth, London, North Bay, Kingston, Saskatoon and Winnipeg. About 71 per cent offered condominiums starting under $200,000, including Moncton, Fredericton, Halifax-Dartmouth, Sudbury, North Bay, Peterborough, Mississauga, Burlington, Niagara Falls, St. Catharines, Kitchener- Waterloo, London, Windsor, Surrey, Chilliwack, Victoria, Kelowna, Edmonton, Saskatoon, Regina, and Winnipeg.

The most affordable markets for detached homes, based on starting prices are Moncton ($115,000), Charlottetown ($120,000), and Saint John ($130,000) in Eastern Canada, Windsor ($75,000), Niagara Falls ($119,000), and St. Catharines ($125,000) in Ontario, and Winnipeg ($185,000), Saskatoon ($190,000), and Regina ($210,000) in Western Canada.

For real estate information, contact Leo at 431-7100 or leocampanella@yahoo.com.