First-time purchasers eye $300,000 homes

Is there an ideal price tag attached to the dream of home ownership?

Well, first-time homebuyers in Canada think so. In fact, they are zooming in on the $300,000 price range when looking for a new house.

And, they plan on putting down about 16 per cent ($48,000), according to a new BMO First-Time Home Buyer's Report.

Interestingly enough, the average resale house price in Canada has grown over the years. In fact, the latest figure from The Canadian Real Estate Association (CREA) is $368,895.

And that's up significantly from a decade ago when the average resale house price was sitting just above the $200,000 margin.

Times have certainly changed. I remember when we bought our home way back in (ahem) 1989 when both interest rates and housing prices were at an all-time high.

But that was then and this is now.

For the past few years, Canadians have been fortunate to be able to take advantage of the historically low interest rates. The current rates have made it a lot easier for first-time homebuyers to get their foot over the welcome mat and into the door of home ownership.

According to the report, most first-time homebuyers indicated they hope to be mortgage-free in 20 years or even sooner.


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