Too Good To Be True
It is not all good, the reports also noted that it seems to be getting more difficult for first time buyers to get pre-approved for mortgages (http://www.cnw.ca/en/releases/archive/June2011/15/c6117.html) with 76% of respondents having gotten a pre-approval down from 91% in 2010. There are also implications that first time homebuyers are not doing as much research before buying as they have in the past with only 72% stating that they spoke to a mortgage broker before purchasing, down from 84% last year. In some cases leading to disappointments if buyers are declined after signing purchasing agreements.
So it seems that there is still a very viable market for first time homebuyers and purchasing ones desired home is still attainable, however research is an important part of the buying process including speaking with a certified mortgage professional and ideally seeking a pre-approval on a mortgage in advance.
*The study polled 1,000 Canadians who had purchased houses in the past 24 months or who would be purchasing in the next 24 months.