Homebuyers here a picky bunch

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This article was published 06/07/2010 (5632 days ago), so information in it may no longer be current.

Manitoba has some of the pickiest first-time homebuyers in the country, according to a new report from TD Canada Trust.

The financial institution said a recent survey of first-time homebuyers in Canada found Manitoba/Saskatchewan buyers tend to spend more than nine months looking for a home and view more properties than buyers in any other region of the country.

It said that on average, they view at least 15 homes before buying, and 20 per cent of them look at more than 25.

"They spend a lot of time shopping because they plan to spend many years in their first home," the bank said. "In fact, 55 per cent of people in (the two) provinces, plan to spend more than 10 years in their home or never plan to sell."

Winnipeg REALTORS president Claude Davis said another reason local buyers are taking longer to buy is because there are also more homes to choose from now than there were six months or a year ago.

"It only makes sense that if there are more out there, they’re going to look at more."

Also, "Winnipeg shoppers are generally a cautious group," Davis said. "They like to do their homework" before making a big-ticket purchase.

The TD survey also found a higher-than-average number of Manitoba/Saskatchewan buyers — 81 per cent versus 75 per cent nationally — prefer a newer home over an older one if the price points are similar. And nearly three-quarters of them want a detached home rather than a semi-detached one or a condo, versus just over 50 per cent nationally.

Davis said that’s probably because, despite rising house prices, single-family homes are more affordable here than in most other major Canadian cities.

While Manitoba/Saskatchewan buyers are pickier, the TD survey found they’re also more pragmatic. Forty-five per cent of them said they expect to pay list price or more to get the features they want, versus only 35 per cent nationally.

One mortgage specialist with TD Canada Trust official said it’s only natural for people to want their first house to be the home of their dreams.

"But it is important to be realistic about what you can afford as a down payment and what that will mean for both the type of home you buy and for your mortgage payments over time," Farhaneh Hague said.

The survey found that only 30 per cent of first-time buyers in Manitoba/Saskatchewan plan to have more than a 20 per cent down payment.

The survey confirmed that first-time buyers here and elsewhere in Canada do tend to do their homework on mortgage options and pre-approved mortgages, but still felt most unprepared for closing costs, land transfer tax, and legal fees.

The TD report compiled 1,000 results from an online survey between June 8 and 21 of Canadians who had purchased their first home within the past 24 months or intended to purchase their first home within the next 24 months.

 

murray.mcneill@freepress.mb.ca