Why Now Is the Perfect Time to Buy Your First Edmonton Home

April 9, 2021 7:00 am Published by Terry Paranych Real Estate Group

Even for the most experienced buyer, a home is no small expense – but for a first-time buyer, the idea can be nothing short of overwhelming. However, in addition to Edmonton’s thriving real estate market, there are many reasons why now may be a better time for first-time home buyers than ever before.

Here are 5 reasons why now is the perfect time to buy your first Edmonton home:

1. Historically Low Interest Rates

According to experts, Canada’s mortgage rates are the lowest in history, with the Bank of Canada having dropped its target rate to 0.25% in early 2020, where it has stayed for the last year.

In short, lower interest rates equate to lower monthly payments, ultimately making mortgages more affordable. A such, current rates and market conditions are more favourable for first-time buyers than in recent years, allowing them to enter the market more easily than before.

Keep in mind, these new low rates won’t last forever as experts also predict they will slowly begin to climb over the next year.

2. A Rise in Edmonton Real Estate Inventory

As we mentioned above, the Edmonton real estate market has (and continues to) remain consistently strong. Total residential sales in the greater Edmonton area increased by a whopping 109.9% from this time last year, with new residential listings up by almost 52%.*

Ultimately, low interest rates combined with increased home inventory and reduced home prices (more on that below) have resulted in buyer’s market conditions. This means first-time home buyers won’t just have a vast range of properties to choose from, but they may also benefit from greater power of negotiation (i.e. a lower sale price, buyer concessions, repairs, etc.).

3. Home Prices Are Increasing

Even though Edmonton currently maintains a balanced market, home prices are gradually beginning to rise, with average single-family home sales increasing by 13.7% from last year and roughly $30,000 overall from 2019. Condos (including apartment-style units and townhomes) and duplexes, which are often a first choice among first-time buyers, are also slowly rising in price – having increased by 5.2% and 11.1% year over year, respectively.

With the national average home price only expected to climb over the next year (along with mortgage interest rates), now is the best time for first-time buyers to take advantage of Edmonton’s lower residential sale prices.

4. First-Time Home Buyer Help

First-time buyers are also in a unique position to take advantage of Canada’s many first-time buyer programs. From down payment help and reduced mortgage payments to housing rebates and tax credits, theses programs are geared towards making first-time more homeownership affordable:

First-Time Home Buyer Incentive – First-time buyers with a minimum 5% down payment may benefit from reduced monthly mortgage payments through a shared equity mortgage with the Government of Canada.

Home Buyers’ Plan – Withdraw up to $35,000 (tax-free) from your RRSPs to buy or build a new home. Your spouse or partner may also do the same for a total of $70,000.

Home Buyers’ Amount – A $5,000 non-refundable income tax credit offering up to $750 in federal tax relief (a great way to offset closing costs and other additional costs of buying a home).

GST New Housing Rebate – A GST rebate for first-time buyers who build a qualifying new home, substantially renovate an existing one or converting a non-residential property into a home.

5. A Leg Up On the Competition

First-time buyers who opt to partner with an expert Edmonton REALTOR® are much more likely to find a home they love, at a price they can afford vs. those who choose to go it alone. Not only will a licensed Edmonton real estate professional understand your unique first-time buying wants and needs, but they also have the skills and expertise to guide and coach you through the entire purchasing process.

Most importantly, they also help first-time home buyers save a ton of money when it comes to navigating the market (i.e. looking for homes within their budget), finding great deals, negotiating with home sellers and their agents, spotting potential problems, etc.

Check out: What to Look For When Choosing the Right REALTOR®

Other perks in becoming a first-time homeowner sooner rather than later:

Build Long Term Wealth – With every mortgage payment you make, you accumulate valuable equity in your home. Once your mortgage is paid off, you’ll own an asset worth hundreds of thousands of dollars, free and clear.

Take Pride in Homeownership – Your new home is just that – yours. This means you can personalize and live how you please, free of landlord rules and restrictions. You’ll also never have to worry about unexpected rental increases or having your living arrangements sold out from underneath your feet.

Generate Passive Income – Many first-time buyers opt to offset the costs of homeownership by purchasing an investment property that allows them to build valuable equity while generating passive income.

For example, in purchasing a single-family home with a finished basement suite or a full duplex (with the intent to rent out the other side), first-time buyers can utilize tenant income to make their current monthly payments more affordable and pay their mortgages off faster.

Are you a first-time home buyer in Edmonton? We can help! Download our free guide: A Step by Step Guide For Buying Your First Home. In it, you’ll learn everything you need to know about:

Coming up with your down payment
Calculating how much home you can truly afford
How to get pre-approved for a mortgage
Determining your wants and needs
Home search tips
Making an offer
What to expect on closing day
And more!

8 Mistakes to Avoid if You’re a First-Time Home Buyer

First-Time Home Buyer FAQs

*As per REALTORS@ Association of Edmonton Monthly Market Statistics Update, April 5th, 2021.

Tags: buying

Categorised in: Buying a Home, First-Time Home Buyer

This post was written by Terry Paranych Real Estate Group