In the constantly changing landscape of the Canadian Real Estate market, potential homebuyers often find themselves pondering the question, “Is now a good time to buy or should we rent/save for another year? “
With over 25 years in the mortgage industry, I’m here to shed light on why waiting will cost you more in the long run and to provide valuable tips for making a well-informed decision in your market.
- Current Market Conditions
With increased demand from population growth and reduced supply, we are seeing a surge in Canadian Home pricing. Depending on your region, we are seeing forecasts of 5%-10%+ in Canadian home values in 2024. This means that a $300,000 home could be worth $315,000 if you wait another year to purchase. - Interest Rates
Are the rate hikes over? It seems like every week brings a new news article that seemingly affects the way the interest rate winds blow. With current inflation data showing a slowdown, is a rate drop in our near future? Keeping an eye on inflation as well as the Canadian Bond Yield are great ways to better predict any changes to the Bank of Canada Prime rate. - Market Trends and Projections
Understand your local market and identify trends. Is there new industry moving to your area? Is the job market growing or shrinking? How many new homes are projected to be built in your market this year? All of these factors will help you make a sound investment decision when considering purchasing a home. - Consider Long-Term Value
Look beyond the immediate and consider the long-term value of the property. Remember that equity growth works two-fold.- Paying down your mortgage debt
- Increasing value of your home over time
Tips for Buying a Home in Canada:
Get Pre-Approved
Before embarking on your home buying journey, get pre-approved for a mortgage. This not only helps you understand your budget but also makes you a more competitive buyer in the eyes of sellers.
Research Neighbourhoods
Exerts always say, “find your neighbourhood first and THEN find your home.” Conduct thorough research on neighbourhoods that align with your lifestyle, preferences, and budget. Consider factors such as amenities, schools, and proximity to work.
Work with a Professional
Enlist the services of a qualified real estate agent and mortgage broker. Their expertise can guide you through the process, ensuring you make informed decisions at every step. When buying a home, these services are almost always free to you.
Why Waiting Can Cost You
Rising Property Values
As outlined above, property values often appreciate over time. Waiting might mean paying a higher price for the same property in the future.
Interest Rate Fluctuations
Interest rates can fluctuate, and waiting might result in higher mortgage rates, impacting your overall cost of homeownership. Everyone is talking about how much higher rates are in the past few years but remember, the interest rate on rent is 100% 😊
Missed Opportunities
In a competitive market, delaying your decision might mean missing out on prime opportunities and desirable properties.
The best time to buy your home was 10 years ago; the second-best time is now. Although the home buying journey can be a stressful time but enlisting a qualified team of mortgage and real estate professionals is the best way to prepare yourself for a successful new home purchase.
Reach out to your Advanced Mortgage professional today and let us help you make cents of your mortgage.
