If you’re a first-time buyer looking for a home in Canada, Winnipeg might be a good place to start.
According to a national report by Royal LePage, a first-time home buyer’s money goes further in Winnipeg than most other major Canadian cities.
The report looked at what people aged 25 to 31 could afford. It found the median income of people in this age group is about $38,000.
According to Royal LePage, a single person usually has a maximum budget of $200,000, factoring in a 20 per cent down payment. For a couple it's typically double that, coming in around $400,000.
In Toronto, $400,000 buys a one bedroom apartment-style condo. In Calgary it covers a two-bedroom townhouse and in Winnipeg it’s enough for a three bedroom townhouse-style condo on Wellington Crescent.
Royal LePage broker Michael Froese describes Winnipeg as a “Goldilocks market.”
“What that kind of means is it’s not too hot, not too cold,” he said.
Peter Squire, who works with Winnipeg Realtors, said first-time buyers make up at least 35 per cent of the marketplace,
“You can’t ignore what they do to stimulate the domino effect for other purchases, so when they buy somebody’s existing home, that allows them to move on with their plans,” he said.
All buyers have to pass a stress test to prove they can take on higher monthly payments if interest rates rise. The Royal LePage report shows the stress test has reduced a peak millennial’s purchasing power by about $40,000.
- With files from Sarah Plowman.
