Tue Mar 18, 2014 9:39am PST
High real estate prices in Vancouver are leading first-time home buyers to set budgets considerably higher than the Canadian average across the country, delaying their purchases and leading to cutbacks in their lifestyles, according to a March 18 BMO report.
The report found first-time buyers in Vancouver expect to spend over half a million dollars – $506,600 – on their first homes, compared with $316,100 nationwide.
By comparison, those in Toronto plan to spend $408,300 and Calgarians expect to spend $363,400.
Of those surveyed in Vancouver, 57% said their timelines have been delayed due to rising real estate prices, compared with 39% across the country.
Laura Parsons, mortgage expert for BMO Bank of Montreal, said these delays are not surprising.
“In a real estate market such as Canada’s, where prices have been consistently rising, those who put off their purchase need to ensure that the rate at which they are saving outpaces price gains,” Parsons said.
“Otherwise, they may find themselves further behind in the long run.”
The survey also found that 40% of those in Vancouver expect parental assistance, compared with 30% across Canada.