It’s been an intense few years in the Canadian real estate market. After a record increase in house prices throughout the pandemic, Canadians, like you may be asking themselves “Is now a good time to buy a house?”
To help you figure out if now is a good time for you and your family to move, we’ve broken down the main factors to consider:
#1. What Do Interest Rates Look Like?
Since mortgage rates are closely related to the Bank of Canada’s central rate, these have also started to climb. What does that mean for home buyers?
Higher mortgage rates mean higher monthly payments, with a slight percentage difference over the lifetime of a loan equalling thousands of dollars.
Conversely, you could also argue that now is the best time to buy a home since interest rates could climb even further. Furthermore, while interest rates may be higher, prices are correcting to 2019 values and so it may be worth considering a move now.
#2. We are now in between a Balanced Market and a Buyer’s Market. How Does that Affect my Decision to Sell?
What is a Buyer’s Market?
If more homes are available than buyers, the buyer has more leverage to get the deal they want.
A buyer’s market means sellers must try harder to sell their homes because there is more supply than demand.
Typically, prices will be lower, and houses will remain unsold for longer.
In a buyers market, sellers compete against a higher percentage of sellers, making them more willing to give way in negotiations with potential buyers.
Selling in a Buyer’s Market
Selling your home in a buyers market will be more complex, and you will have to work harder to get your home noticed and sold. To give your home the best chance of finding a buyer, it needs to appear better than other homes available.
Proper Pricing is Critical in Buyer’s Markets
Pricing your home is always important, but in a buyer’s market, you must ensure it is competitively priced.
Marketing is More Vital
Marketing becomes more crucial when there are fewer buyers around. Professional photos and staging the home become more important. It would help if you made the most of your presentation. Making your home stand out from the competition is vital.
#3. Should I wait until next year to Sell? Will prices increase in 2023?
Interest rates are rising at a fast pace and show no sign of stopping anytime soon. Rising rates can reach an inflection point where some buyers would have to drop out of the market. In other words, if you’re thinking of selling, it might be smart to do it before the rates rise any higher.
If you Sell high, you Buy high. If you Sell low, you Buy low.
So at the end of the day, it will come down to your motivation for selling. Do you need more space? Or are you looking to downsize?
When you are choosing to move in the same market conditions- whether prices are higher, balanced or lower, your outcome will be the same.
The only scenario it wouldn’t make sense would be to sell while the market was at its lowest…wait a year or two and then purchase when the market is on the rise again. However, Buying and Selling within months of each other is always the safest option.
Always, consult a Real Estate Professional who can advise you of the current Market conditions, trends and prices. Get to know what your options are so that you can make the best decision for you and your family. After all, that’s really what’s most important.
Visit our website today www.katharineloucaidougroup.com
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