Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: The economic impact of Real Estate

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: The economic impact of Real Estate: The economic impact of Real Estate Canada’s real estate market is booming, and that’s good news for most Canadians – and not just home sell...

The economic impact of Real Estate

The economic impact of Real Estate

Canada’s real estate market is booming, and that’s good news for most Canadians – and not just home sellers.  The economic impact of a thriving real estate market has a far-reaching ‘ripple effect’ that extends into many aspects of Canadian life.

 A study commissioned by the Canadian Real Estate Association (CREA) and prepared by the Altus Clayton research company for the period of 2006 to 2008, indicated the following:

• Canada’s resale market generated an average of 202,750 jobs each year 
• This represents an average of $2.3 billion annually
• Each residential MLS transaction generated an average of $46,400 in additional consumer spending
• This includes the cost of moving and for post-move renovations after moving in
• The survey does not does not include any renovation expenditures by sellers to prepare their property for sale – if that aspect was included, the economic impact would be even greater.
• The economic impact varied by province – BC was highest with over $60,000 per transaction, while Atlantic provinces generated close to $30,000
• This variation in impact mirrors the level of house prices in the two regions, with BC being the site of Canada’s two most expensive housing markets, Vancouver and Victoria.

So, the next time you see news about a positive real estate market, and you think that has little to do with you --- think again.  Real estate is a cornerstone of the Canadian economy, and we all benefit from a strong and thriving market.   If you’d like more information about the real estate market in your community, contact your local Realtor® or myself, and take advantage of our expert advice.   

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Knowing the first-time buyer

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Knowing the first-time buyer: Knowing the first-time buyer In today’s competitive real estate market, more and more sellers are looking to target the increasingly import...

Knowing the first-time buyer

Knowing the first-time buyer

In today’s competitive real estate market, more and more sellers are looking to target the increasingly important consumer group of the first-time buyer.  The first step in reaching this target group is in knowing who this customer is, and then understanding their specialized wants and needs.

Just who is the first time buyer in terms of age, income, marital status, house price range?  There’s no one right answer to that question, especially these days.  First time buyers come from all ages and all walks of life.  Also, their demographic profile can vary dramatically from market to market, and even between different communities in the same major market area.  However, there are some interesting trends in the first time buyer demographics:

·         As home prices rose, it resulted in young people staying at home with their parents longer in order to save the necessary money for a down payment.  Not surprisingly then, the age of first time buyers has risen in recent years.

·         There’s been a major shift in first time buyers in terms of marital status.  Ten years ago, the vast majority were young married couples starting out their life together, with a hope for a growing family.  Today, while couples still represent the majority, we’re also seeing a far greater percentage of young professionals, especially single women, entering the home buying market.  These career-oriented people no longer want to wait for marriage before taking their first step on the property ladder.  They want to build equity and achieve the dream of home ownership without waiting for the right life partner to come along.  This group is a major force in low upkeep urban housing that is seen in the condo market.

·         Canada enjoys a very strong positive in-migration population, and these individuals will continue to fuel the first time buyer market.

One trend that we’re now starting to see is an increase in the percentage of first time buyers in the market.  With the escalating prices in recent years, some of these individuals were previously ‘locked out’ of the housing market.  Now with adjusting prices, historically low interest rates, and help from government initiatives such as the Land Transfer Tax Rebate, have resulted in some of the most affordable housing seen in most markets in years.  This is bringing a new buyer back into the market, as they are now seeing homeownership come back within their reach.

Want to know more about the first-time buyers market?  Give your Realtor® a or myself a call to find out more.