This image is compliments of my mother. I relate this to our current Buyer’s market. Rates are still at an all time low and many young families can finally afford to get into the market. A market where young families who purchased in the last 2 years may not be able to get out. With a dip in prices this last year I recommend buying and not selling unless you are planning to turn around and buy something different.
A move up Buyer “this is your time to shine” If you were to sell at the $200,000 price point and the market has taken a 10% hit in your product you lose 20% in comparison to selling last year ($20,000) if you are to turn around and buy a $500,000 home that took the same 10% hit ($50,000) you are still ahead $30,000. The market is always relative to your current situation. If you have been thinking of buying, do it while you can lock in a good interest rate, here in the Okanagan it is cheaper than renting. (ie: paying someone else’s mortgage) Sellers, if you aren’t staying in the market I would suggest hanging on and renting it out to those people who just won’t make the home ownership transition, should cover your mortgage and the market should recover. Historically it always has and as per the CMHC report previously blogged about there are market indicators that show an increase due to migration, and a recovering economy. Those rates will eventually go up but right now they are in favor of pushing buyers into the market. CMHC has also changed the lending rules a few times in the last year to ensure that the buyers can sustain their chosen purchases, Canadians won’t follow the US trends at this time.