According to the Ontario Real Estate Association (OREA)’s Ontario Home Ownership Index from earlier this year, 57% of Ontario residents believe that the province’s real estate market is favourable. The Home Ownership Index is a semi-annual province-wide research study commissioned by OREA, designed to reflect on the outlook of Ontarians when it comes to the residential real estate market. The study also examines market trends and the real estate plans of potential home buyers and sellers. OREA released the latest statistics this past July, reporting that while 57% of residents believe the real estate market is “favourable”, 20% believe the provincial market is “unfavourable”. As for potential home buyers and sellers, 10% of Ontarians stated that they are “very likely” to purchase a home within the next two years, with 14% responding that they are “very likely” to sell a home within the same time period. Meanwhile, 82% of Ontarians agree that real estate is a good investment, and 84% believe it makes more sense to own a home rather than rent one over the long term.
Be Financially Prepared for Home Ownership
An important aspect of home ownership is, of course, ensuring that you are financially prepared. As the report notes, “Establishing realistic expectations at the outset is key to home ownership”. Whether you are a first-time buyer or you’re planning to sell your current home before your next move, formulating a solid saving strategy is a major factor when determining your budget for your next home. Of all Ontarians planning to buy a home in the next two years, creating a budget is the top method of saving for a down payment (40%), followed by cutting costs (36%) and earning more money (36%). However, the Home Ownership Index looks further into these numbers and finds differences between saving stategies for first-time buyers than for repeat buyers.
Just 29% of repeat buyers said that they would crate a budget, compared to two-thirds (67%) of first-time buyers. Half of first-time buyers (54%) and only a third of repeat buyers (29%) responded that they would cut costs or delay spending in their plans to save for a down payment on a home. As for creating a budget, 54% of Gen Y respondents agreed that they would while only 19% of Baby Boomers said the same. OREA President Costa Poulopoulos noted that while “down-payment saving strategies depend on the buyer,… regardless of age or experience, home ownership is one of the biggest financial commitments most people will make in their lives; it takes proper planning to do it right”.
Real Estate Professionals Weigh In
OREA also looked to industry professionals for their expert advice on the financial preparedness of first-time buyers. 75% of Ontario real estate sales representatives found that first-time buyers tend to do their research and are prepared when entering the home buying process. 89% of sales representatives recommended that buyers calculate how much they can afford as a top priority, and 82% suggested that buyers should speak to a mortgage lender or arrange a mortgage in advance. Sales representatives also agreed that determining what type of home you are looking for and which neighbourhood to buy in are top priorities for financial preparedness (ranked as third and fourth priorities among 84% and 87% of real estate sales representatives, respectively).
If you are thinking of entering the real estate market in Ottawa, either for the first time or as a repeat buyer, feel free to contact us directly for more information about the market in your neighbourhood. Performance Realty has eight branch locations across Ottawa and Eastern Ontario! We would be happy to provide you with a free, no obligation market evaluation of your home to help you determine what it’s worth, or you can browse our website to find a sales representative or mortgage specialist who can help you. We also have hundreds of active residential listings across the Ottawa region for those who are beginning the search for your dream home.