Yesterday is always the best time to buy real estate, but is today a good time? Before you scroll away, let me explain why the answer is yes to the question “is now the time to buy”. Just read on a little more before you jump to conclusions…
Prices have been coming down. Buyers are unsure because of the interest rates. Bank Of Canada has been raising interest rates to get inflation under control. We all agree on these three points. All of these have been slowing the market. But what happens when prices of properties stop coming down? What happens when interest rates stop going up? We can all agree that the market is going to start picking up. Ok, so what happens when the prices start to show an upward turn? What happens when the interest rates start to go down? The market is going to become very active again. Right? Finding this sweet spot between when the prices stop going down and before they go up, and finding the moment interest rates stop increasing and actually start decreasing is called timing the market. And you will miss it if you are not actively searching right now at this very moment.
There are rumblings that the Bank of Canada will be holding the interest rate steady for now until the spring. There are whispers that they may actually be forced to lower the interest rates to combat inflation. So am I basing everything on rumbles and whispers? No, it is more than rumbles and whispers.
People have been hurting financially for a long time now and many sellers have refused to put their property on the market because they either are unsure of what the market is like and want to wait it out, or refuse to believe that their house would sell for so little compared to what it sold for only a few years ago.
There are several Buyers waiting for an opportunity. Some have been looking for a long time but interest rates have forced them to pause. Some Buyers are just skeptical and waiting to see where the interest rates and market are going before they buy. There are many buyers who lost out in competition over and over and became fed up, who decided to wait. Let’s not forget about immigration and the demand for housing that brings. So demand is there…waiting.
Right now the market seems as if the buyers and sellers are circling each other. Buyer’s waiting for the price reduction they expect within the next few months, or the interest rates to balance off or decrease. Sellers expect to see the market rebound within the next few months. So what happens in the next few months?
The market is being suppressed by artificial means. Governmental influence. I heard it described as a big finger pushing down on a spring. What happens when the finger is removed? The spring recoils quickly.
So if you are waiting to buy, you are going to miss it. Once that finger is removed that spring it is going to pop out quickly. So, to answer your question “Is now the time to buy”, the answer is yes. Now. Before the “spring”.
Have questions or concerns, please contact Ryan Ligeza.
