First-time buyers are said to be driving BC’s residential boom, but that’s not what data shows. BC Government property transfers do reveal more first-time buyers in January. The catch is they failed to grow as quickly as total home sales. First-time homebuyers now represent the smallest part of the market in years.
First-Time Buyers Fail To Keep Up With Total Home Sales
There’s more first-time homebuyers in BC, but they’re failing to keep up with rising home sales. The province had 1,070 first-time buyers in January, up 17.1% from a year before. Total transactions grew by 24.2% over the same period though. This means first-time buyers aren’t scaling as quickly as total home sales.
BC First-Time Real Estate Buyers TransactionsThe number of BC real estate transactions that involved a first-time homebuyers. Source: BC Land Registry Data, Better Dwelling.
Greater Vancouver real estate represented fewer than half of those transactions. Of the province’s first-time buyers, 469 were buyers in Metro Vancouver. This was an increase of 29.6% compared to the same month a year before. The ratio is an improvement, but first-time buyers in the region are still underrepresented compared to the province… which isn’t doing too hot.
BC’s First-Time Buyers Fall To Smallest Ratio In Years
First-time buyers failing to keep up with the province’s total growth, means a smaller rate. First-time buyers were 9.65% of transactions in January, down from 10.28% in the same month a year before. That’s the smallest rate in at least two years, but likely goes back much further.
BC First-Time Real Estate Buyer RateThe percent of BC real estate transactions that involved a first-time homebuyers. Source: BC Land Registry Data, Better Dwelling.
Greater Vancouver improved a little more, but still represented a small segment. The region’s first-time buyers represented 4.2% of the province’s sales in January. This was up from 4.1% of transactions compared to a year ago. Not exactly a huge part of sales, but it did manage to move a little faster than the total rate of buyers.
If first-time buyers aren’t driving sales, what is? Typically real estate functions as a property ladder. First-time buyers scoop homes, and existing homeowners upgrade. If the rate of first-time buyers fails to keep up with the total, it means more existing homeowners are buying property. Either a lot of people are getting divorced, or there’s significant investor and second home demand.
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