If you’re a follower of the Newinhomes.com Blog, then you’re aware we frequently post tips and other content for first-time buyers. This month, you’ll see an influx of special features for those of you looking to buy your first home!
In the new home market, condos are still the most affordable option for first-time buyers. One issue is that supply can’t meet demand, so prices have been going up steadily over the last couple years.
According to the Building Industry and Land Development Association (BILD), the benchmark price for a new condo unit in the Greater Toronto Area (GTA) in March 2018 was $742,801, which is nearly 40% higher than the same time last year.
Part of the reason for this big increase in the benchmark price is the combination of the rising price per square foot and the rising benchmark unit size. Unit size averaged 900 square feet in March 2018 (compared to 800 square feet last year) and price per square foot increased to $825 from $666.
When first-time buyers look at that price, many of you probably think there is no hope of getting into the new home market. Just remember that this is an average price, so there are many new condo units that are way more expensive and many that are way more affordable.
It’s still possible to find new condo units in the GTA in the $300,000s. If your budget is lower than the upper $200,000s, then you may have to consider looking for a new home opportunity outside of the GTA.
You’re also competing with more move-up buyers and empty nesters. With the benchmark price of a new single-family home still above $1.2 million, there are couples and small families using new condos as an option to move-up into something bigger.
Empty nesters are selling their large single-family homes and choosing to live in condos because it allows them to live a carefree lifestyle and put more money into their retirement fund.
All that said, we’re spending all of May sharing tips on how to save money for a down payment, potential opportunities for first-time buyers, budget friendly decor and design ideas, and much more!
We’re also reaching out to some first-time buyers to learn more about their purchasing experience, why they decided to buy where they did, and what challenges they faced throughout the entire process.
Stay tuned – we have some interesting featured posts coming soon!