Edmonton market is ripe for first-time homebuyers

There is no denying the importance of first-time homebuyers in the new home market, they are basically its lifeblood. And with prevailing circumstances in the Edmonton market right now, there is ample opportunity for those on the fence to make the jump to homeownership.

There’s no shortage of new home options to choose from, and a ton of new communities are opening up with fantastic deals for the right buyer. Mortgage rates remain at a record low providing a major incentive for buyers. The federal government is also providing some assistance through the First Time Home Buyer Program from the National Housing Strategy that helps eligible first-time homebuyers purchase their first home.

In Edmonton, even the municipal government is doing its part to encourage first-time homebuyers with its First Place Program. The First Place Program partners the City with banks and builders to develop vacant surplus school building sites into attractive townhomes targeted specifically at this market.

According to the program’s website, the homes are market priced, with a five- year deferral on the land portion of the mortgage, making them more accessible to first time home buyers.

Still, stepping into such a big life-changing commitment, it’s normal to have doubts. That’s why a lot of homebuilders offer further assurances that can help new home buyers make the decision. We talk to Carrington Communities, Excel Homes and Rohit Group of Companies – a few of the city’s premier providers of new homes for first-time buyers – to get an insight in today’s market.

A logical first step

Excel Homes Marketing Manager, Kristina Plank says the starter home is the first step to the buyer’s independence. “It’s most likely one of the largest purchases an individual has made at this point in their lives, and we want to ensure that the home includes everything they could need and more!”

Carrington Communities Marketing Manager, Courtney Provencal, agrees, saying owning a home allows one to control their future by providing security and stability they wouldn’t otherwise get with renting.

“When you own your home, you don’t have to worry about rent increases, having to move every couple of years, and you have freedom to personalize your home with paint colors and other design features,” she says.

It’s a great time to jump in the homebuying game now, she adds. “Today’s real estate market is excellent for potential homebuyers, especially first-time buyers. There are federal supports you can access through the Frist-Time Homebuyers Incentive, allowing you to save less for your down payment, and in effect afford a higher mortgage payment. Combined with historic low interest rates your monthly payments will often equal less than rent prices.”

Rohit Group of Companies takes this a step further by participating in the First Place Program, and they are one of the two homebuilders that have partnered with the City in this. “The First Place Program is near and dear to my heart. I worked on our pilot project back in 2008,” Rohit Group of Companies Marketing Director, Amy Power, tells Edmonton New Home + Condo Guide.

Starter homes

Starter homes can be anything from a single-family home to a multi-family apartment or townhome, it just depends on the buyer’s budget. But it is predominantly a smaller home that buyers just starting in life can afford.

Carrington Communities is Edmonton’s top builder of multi-family homes and though they build for every stage of life, a
big chunk of their buyers are
first timers.

“Condo living is very appealing to first-time buyers, they get the independence and security of owning a home, without the worry of maintenance like snow removal and landscaping,” says Carrington Communities marketing manager, Courtney Provencal.

Additionally, Carrington picks their locations very meticulously, taking care that they are surrounded by amenities essential for their buyers. “Many of our locations are a quick walk or drive to major commercial amenities and transit and include underground parking and other building amenities like a fitness centre,” Provencal adds.

For Excel Homes, it’s their single-family homes that gets majority of their first-time homebuyer business. “Our most popular (starter) product types are duplex, laned and front-drive garage homes,” Plank says. “Buyers who are coming from renting an apartment or condo will appreciate the detached living aspects of this product type. These detached homes offer a sanctuary for new homeowners, a space that is entirely their own.”

First Place Program

Edmonton’s First Place Program is revitalizing mature neighbourhoods through the redevelopment of unused school sites to create attainable housing options specifically for first time buyers, and Rohit is fully onboard with the initiative. “Those buyers enter the housing market with a financial advantage by allowing them to defer the land cost payments for five years interest free. The infill locations are often near parks and schools with existing amenities in place, making them perfect for new buyers and young families,” Power says.

“Rohit has been a part of the First Place Program in partnership with the City of Edmonton for over a decade, providing homes for over 400 first time buyers through this program alone. Our newest First Place development is Michaels Park in the Millwoods area where we are building three-bedroom townhomes with over 1,400 square feet of living space and double attached garages.”

Best sellers

“When it comes to starter condos, customers are often driven by price,” says Provencal. “After saving a down payment and securing a low interest rate it’s important that they can stay within their budget for monthly payments.”

She points out that their Elements by Carrington development is popular with first-time buyers, as prices are very budget-friendly ranging between the low $150,000s for a one bedroom up to the mid $200,000s for a two-bedroom. “It’s the affordability factor as well as proximity to highways and major commercial amenities that buyers love,” she says.

First-time homebuyers have really taken a liking to Excel Homes’ single-family offerings, especially the Collingwood model. “In 2020 we sold a record-breaking number of Collingwood homes to families looking to start their journey to new homeownership,” Plank says.

The Collingwood is one of our most flexible front-drive garage plans, offering buyers the ability to personalize their new home with several upgrades including a bedroom on the main floor, the addition of a spice kitchen, and the ability to add a side entry to the basement.” The Collingwood is available in Edmonton’s Cavanagh and Keswick Landing communities. “All of our communities have unique selling features that will attract different buyers!”

Rohit offers a wide range of home style any one of which can fit a first-time homebuyers’ needs.“We see first time buyers in all our product lines – from apartments and townhomes to duplexes and single-family homes,” Power says.

“In Edmonton, our townhomes and duplexes offered throughout the city are highly sought after by first time buyers. Our newest townhome, the Parker in Arbours of Keswick, is gaining popularity with new buyers as well. And of course, the First Place projects.”