Don sent in a link to this article over at Business in Vancouver. According to an Ipsos-Reid study first time buyers are a dwindling factor in the BC real estate market, falling from about 38% last year to about 29% of current buyers.
Rapid recovery of housing prices, particularly in Metro Vancouver, is again pushing first-time buyers out of the market, rather than any decline in interest.
The study suggested people believe the province is slowly turning into a seller’s market with 53% of B.C. residents saying now is a good time to sell a home, up from 14% in the same period a year ago.
On average, British Columbians are estimating housing prices will rise 4.6% in the coming year with 57% predicting prices will rises compared with only 12% who believe prices will fall.
So if you think BC house prices will fall in 2010, you’re definitely in the minority. But what does a decline in the number of first time buyers mean? Will this have an impact on the move-up market? Of course 29% isn’t that low – in California only 26% of market was composed of first-time buyers in 2005. They also had a difficult time in Phoenix. Here’s an article from 2005 with some tips on how to cope as a first time buyer.