CENTURY 21 Canada National First-Time Buyer Survey

The CENTURY 21 National House Price Survey of Typical First-time Homes included 128 neighbourhoods within 55 cities and towns across Canada.

The 4 main findings were:

1. Trade-off comes between a smaller home and a longer commute
2. Buyers look to mortgage brokers for financing alternatives
3. Boomer parents helping their children
4. Canadians trending towards condo, townhouse ownership

Most and Least Expensive Areas to Buy in Canada

The most expensive cities for first-time buyers based on price per square foot are Vancouver, where a 412-square-foot condo in the downtown is $281,000 or $682 per square foot; the Toronto suburb of Thornhill, where an 800-square-foot bungalow on a 3,500-square-foot lot in East York is $480,000, or $600 per square foot; and downtown Toronto, where a 340-square-foot condo in trendy Liberty Village is $200,000 or $588 per square foot.

The least expensive cities for first-time buyers based on price per square foot are St. John’s (2,150-square-foot two-storey bungalow, $170,000 or $79 per square foot), Halifax (1,408-square-foot semi-detached house, $129,900 or $92 per square foot), Windsor (850-square-foot 1½-storey house, $91,000 or $107 per square foot), London (1,000-square-foot townhouse, $120,000 or $120 per square foot), and Sudbury (969-square-foot 1½-storey house, $140,000 or $144 per square foot).

The survey also found that the most expensive smaller centres for first-time buyers based on price per square foot are Fort McMurray, Alberta, where the oil sands boom continues (1,120-square-foot bungalow, $565,500 or $505 per square foot), and Canmore, Alberta, in the majestic Rockies just east of Banff National Park (1,100-square-foot townhouse, $445,000 or $405 per square foot).

The most affordable prices in smaller centres for first-time buyers based on price per square foot are in Fort Erie, Ontario, 30 kilometres south of Niagara Falls on Lake Erie (1,157-square-foot 1½-storey house, $96,000, or $83 per square foot), Summerside, Prince Edward Island (1,083-square-foot 1½-storey house, $89,900, or $83 per square foot), and Yorkton, Saskatchewan, 190 kilometres east of Regina (896-square-foot bungalow, $83,000, or $93 per square foot).

Home Ownership Statistics for Canada

According to Statistics Canada data from 1996 to 2006, home ownership among Canadians is continuing to increase year after year. The number of homes owned has increased from 6.8 million to 8.5 million, or 24%, over these 10 years, while the population of the country has increased from 28.8 million to 31.6 million, or 10%.

Over the last 10 years, the rate of home ownership increased most in Alberta (38% compared with a population increase of 22%), and Ontario (28% compared with a population increase of 13%). The lowest increase of home ownership occurred in Manitoba (11% increase compared with a population increase of 3%) and Newfoundland (8% increase compared with population decrease of 8%).

StatsCan data also shows a national trend towards the purchase of condos, townhouses and other multi-family dwellings — and away from detached single-family homes. In 1996, four in five [80%] Canadian homeowners owned detached single-family houses compared to three in four [74%] in 2006.

Size verses Commute Time

In larger centres, first-timers usually choose small condos and townhouses near their jobs or in attractive neighbourhoods. Detached houses or large townhouses in these neighbourhoods are priced out of their range. In smaller centres, first-timers often choose older detached homes in attractive neighbourhoods and plan to upgrade the house or yard.

Century 21 Canada Limited Partnership is a real estate franchisor with exclusive rights to the CENTURY 21 brand in Canada and is part of the world’s largest residential real estate sales organization. The CENTURY 21 System is comprised of more than 8,400 independently owned and operated franchised broker offices in 58 countries and territories, with more than 142,000 sales representatives worldwide.