Heathy housing markets across Canada depend on first-timers to be a solid part of the buyers’ pool, but they are more sensitive to prices, mortgage rates and housing supply than more experienced buyers.
A new report, from a survey commissioned by Royal LePage, says declining interest rates, higher inventory level and prices are becoming within the reach of first-time buyers.
According to the report, “13% of Canadian adults say they are actively working towards the purchase of their first residential property within the next two years. Of this group, a small proportion say they are working towards their first purchase within the next 12 months, while the majority (82%) say they are planning to make a purchase in 12 to 24 months”.
More than half (51%) said they are in the research stage, checking out neighbourhoods where they can afford to live, while 49% are looking at online listings, with 19% actively viewing homes listed for sale in person, and another 19% engaged with a real estate agent. (Respondents were able to select more than one answer.)
“Interest rates are trending lower and prices have stabilized or even softened in some markets, creating favourable conditions for long-awaited entry into home ownership, especially in costly cities like Toronto and Vancouver; yet, hesitation remains,” said Phil Soper, president and CEO, Royal LePage. “For some, ongoing economic uncertainty is prompting them to hold off until there are signs of stability”.
Despite being at the top of the price scale, 49% of respondents to the survey said they have their sights set on a single-family home, with 26% intending to buy a condominium or apartment.
When asked about the typical budget range for first-time homebuyers in their market, 55% of Royal LePage realtors said it was between $500,000 and $750,000, followed by 19% who said it was between $300,000 and $500,000.
In the second quarter of 2025, the national median price of a single-family detached home increased 1.1% year-over-year to $870,200, while the median price of a condominium decreased 0.8% to $592,000.
In Alberta, 13% of respondents say they are actively working towards the purchase of their first home within the next two years, with 3% planning to buy within the next 12 months, while 10% plan to buy in the next 12 to 24 months.
Of the respondents, 45% of first-time buyers in Alberta say they are researching neighbourhoods where they can afford to live, while 42% are actively browsing online listings, 16% are actively viewing homes listed for sale in person, and 10% have engaged with a real estate agent. (Respondents were able to select more than one answer.)
“Today’s first-time buyers are navigating a softer market than the highly competitive conditions that defined the homebuying experience for many Calgarians during the pandemic,” said Natosha Wareham-Bakker, of Royal LePage Benchmark in Calgary. “This shift has created some advantages, giving new purchasers greater bargaining power, particularly over move-up buyers who often need to sell their current property before purchasing another”, said Wareham-Bakker. “The first-time buyer segment is largely made up of people in their late twenties and early thirties, including those relocating from higher-priced cities across Canada in search of a more affordable entry point into home ownership”
Asked if they would receive any financial assistance towards the purchase of their first home, 46% of Alberta respondents said they would. Affordability is at the top of the list in considering buying, with 54% saying they are searching for homes in a more affordable area, 40% are cutting back on discretionary spending in order to save money, and 29% are looking for smaller, more affordable homes than they originally planned. (Respondents were able to select more than one answer.)
OF the Royal LePage agents in Alberta, 63% said the typical budget range for first-time homebuyers in their markets was between $300,000 and $500,000, with 63% of first-time buyers planning to have a downpayment of at least 20%, the highest instance recorded amongst the provinces.
“Although the average age of first-time buyers continues to trend upward, Calgary remains an attractive market where buyers can get more value for their money compared to many other Canadian cities”, said Wareham-Bakker. “Still, financial support from family, whether in the form of a lump-sum gift or co-signing a mortgage, is playing an increasingly pivotal role in helping first-time buyers successfully enter the market”.
“At the same time, it’s important for buyers to be financially prepared before beginning their search. Securing a mortgage pre-approval not only gives buyers a clear picture of what they can afford but also strengthens their position when making an offer in a competitive market”.
Of the Alberta respondents, 55% plan to purchase a single-family home as their first home, followed by 25% who intend to buy a condominium or apartment.
When asked what non-price related features first-time buyers typically desire in their market, 26% of Royal LePage realtors reported newly renovated or homes in move-in ready condition as the top choice, followed by parking (20%) and outdoor living space (15%). (Respondents were able to select more than one answer.)
Due to a high level of spam content being posted in our comment section below, all comments undergo manual approval by a staff member during regular business hours (Monday - Friday). Your patience is appreciated.
