When is the best time to buy real estate? 5 year ago and we will say this for the next 100 years. There are several reasons why buyers may want to consider purchasing a home in Canada now, even in a balanced market:
- Interest rates have started to decrease on the fixed rates: Interest rates play a significant role in determining the affordability of a mortgage. With interest rates currently dropping in Canada, buyers may be able to secure lower monthly mortgage payments and potentially save money in the long run.
- Market stability: A balanced market means that there is a relatively equal number of buyers and sellers, which can lead to a more stable market with less volatility in prices. This can provide buyers with more confidence in their purchasing decisions.
- Long-term investment: Real estate is typically viewed as a long-term investment, and historic trends show that real estate in Canada has generally increased in value over time. Purchasing a home now may be a wise investment for buyers looking to build equity and potentially benefit from appreciation in the future.
- Lifestyle considerations: For many buyers, purchasing a home is not just about the financial investment, but also about the lifestyle benefits that come with homeownership. Owning a home can provide a sense of security and stability, and allow buyers to customize their living space to suit their needs.
- Higher rates or equity: When houses were selling at record highs last year, there was little room to make an equity position quickly even with lower rates. Mortgage rates will go up and down but when the rates start to get lower, the market picks back up and gives confidence to buyers and again which increases the values of the homes again. This is the perfect time to jump in and buy. Would you rather stress about rates or create equity in the home value.
Overall, while market conditions should certainly be considered when making a home purchase, there are many factors beyond the current state of the market that may influence a buyer’s decision. It’s important for buyers to carefully consider their personal circumstances and goals before making any major financial decisions.
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Kelly Wilson
Kelly Wilson, a top national mortgage producer, has dedicated 19 years to customizing financial solutions for clients across Canada. Her strategic approach has facilitated over $1 billion in mortgage funding. Starting her real estate investment journey at 21, she now holds $11 million in assets. Kelly's mission is empowering clients to achieve financial freedom and sustainable wealth.