The level of activity for first-time buyers in the Ottawa market continues to stay strong in 2005, as consumer confidence, job growth and low interest rates attract new buyers to the market. However, buyers are shopping around and taking more time to decide on a home, as new home construction has eased inventory levels, providing a greater variety of properties to choose from.

The majority of entry-level buyers in Ottawa have been purchasing condominiums priced from $140,000 to $180,000. Alternatively, some are opting to buy townhouses located outside the city centre in the same price range. The most popular areas include Orleans, Barrhaven and Kanata.

“There is a trend among today’s first time buyers to purchase homes with more amenities than previous generations have,” said Pierre de Varennes, broker/owner, Royal LePage Performance Realty, Ottawa. “Low interest rates have permitted them to acquire the quality of home that they would have otherwise not chosen to buy. They are purchasing homes in the communities that they prefer, with upgrades that they would have previously passed up.”

The Ottawa area contains the highest per capita number of consumers with undergraduate degrees who make up the majority of the first-time buyers in this market. Traditionally, these buyers would not be able to purchase a home until they had saved enough money to secure a down payment.

However, with the variety of mortgage options available, most entry-level buyers are able to purchase a home much sooner, with little to no down payment.