First time property buyers are returning to the game in the Toronto real estate housing market say experts. This is especially important to the overall housing market because the virgins were the first to go underground when the economy turned sour worldwide last year. The signs of a first timer returns mean the market has begun to recover.
First timers deserted the market in droves at the height of the global recession, back in the fall of 2008. They are returning, it seems thanks to lower interest rates as well as lower prices on homes and condominiums. The Canadian government is also handing out tax credits to first time home buyers or those willing to buy a handyman special and fix it up. Those tax credits kicked in at that beginning of 2009.
First time buyers are the foundation of an active housing market. They motivate the market by buying homes that free the owners to pursue their second, or third, or fourth house, moving up in size and hopefully in price. No first time buyers and what results is a stagnant market with dying homes. Not good for the economy. The Canadian Real Estate Association says housing sales have increased for the last three consecutive months, which is a very good sign that things are finally turning around. Toronto and Vancouver are seeing the biggest signs of recovery.
Buyers Market for Condos
Condo developers in Toronto are so eager to attract first time buyers that they are offering expensive trips or thousands of dollars off the purchase price in order to get potential home buyers to sign on the dotted line. Some experts have categorized it as “let’s make a deal,” for the condo, with the buyer having the upper hand. Just a few short years ago it was a sellers’ market where buyers were forced to take it or leave it. But now the tables are turned.
Knowing the Limits
However, despite the willingness of developers to please the buyer, the buy should know the limitations imposed on the developer by his/her costs and agreements with lenders. That means the developer can only go so far-maybe offer a trip to Paris, but not to the moon, so to speak. Developers are more able to wheel and deal when the project is complete or under construction. Until they get the financing in place, the lenders call the shots
Toronto real estate developers tend to offer incentives that fall into three categories and it is important for the first time buyer to determine which category is being offered in order to get the biggest bang for the buck, so to speak. The first category of incentive is to drive sales over a very brief period of time, like a day or weekend. The second category is to spur sales over a longer period of time and the third is intended to move condos already completed or shortly due to be completed.
Aliyah Lennox is a Toronto real estate specialist working for MyCityToronto.com, Toronto’s premier business directory. If you are looking for the very best real estate agents and brokers in the GTA you will find them on http://www.realestate.mycitytoronto.com