No surprise here: Low interest rates and prices encourage buyers

Low interest rates and house prices are the driving incentives for potential first-time homebuyers across Canada, according to a new report by Royal LePage Real Estate Services.

“While [first-time buyers] appreciate government incentives such as tax credits, it is markedly improved affordability that is proving to be the powerful drawing card,” said Phil Soper, president and chief executive of Royal Lepage. “Our survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.”

In the survey, potential buyers were asked to rank their top incentives for buying a first home – 86 per cent cited low interest rates followed by 81 per cent who said lower housing prices were the top motivating factor. Job security and a stable economy were the next ranked incentives.