So you ran into your agent when you were thinking of upgrading pads. You have seen news about rising interest rates, rising real estate prices and the affordability of home-ownership being at an all time low! You ask the classic question, “How’s the market?”
After a few minutes of speaking, you tell the agent you are thinking of making a purchase. They reply instantly with, “Well, it is a great time to buy”
Of course it is, if you ask an agent it always is!
There is a reason why and it is not because the agent wants a commission cheque right before Christmas.
- The market has cooled and homes are sitting for longer
- If you ask the average person when the best time for real estate activity is, they will give you the same two seasons; The best time is Spring! The second best? Fall…
- These may be the times that the most activity happens, but who wins in those high volume times? The buyer with more to choose from? The seller with new buyers finally waking up? The truth is; the buyer who waits for prime seasons is now competing with all the other buyers thinking it is time to buy! After all, who wants to move their stuff in the cold of the winter or in the middle of their summer vacation plans?
- Interest rates are set to rise and the price of land (almost) always appreciates.
- We do not have 20-20 vision of the future, the economic policies set by the Bank of Canada are publicly known and we can predict which way interest rates will be going. We have not mastered the art of producing more land and as hard as Elon Musk is trying, we do not have pedestrian flights to our future home on Mars.
- Prices WILL go up, interests ARE going up. Buying at the lowest price and locking in a competitive rate today will set you up fantastically when the interest rates increase an additional .5 to 1%. That mortgage at a competitive rate is now an asset to your home sale if you assign it to the new buyer!
- If you don’t find something you love, you are not forced to buy it!
- Slow market? Not sure if you want to buy? Why not look anyway?
- No one is perfect and lots of things in life can be unpredictable. Life events can force people to sell their property and in a situation like that, they may need to take a smaller amount than their home is worth (if the demand is not present)
- I never enjoy seeing people in tight spots financially but the truth is, it happens all the time. You may find a great deal in a less busy time in your real estate market. If you don’t find that deal, you don’t have to buy!
If you want to know why it’s a great time to buy, call me directly at 519-497-5923 or via email at firstname.lastname@example.org