Real estate market news can be confusing and stories from different sources are often conflicting. One day it’s a seller’s market with bidding wars and hot listings selling before they even host their first open house. The next, we read about a housing bubble that is about to crash and rising interest rates.
There are always conflicting news stories about the real estate market.
With all this constantly changing information, how can home buyers be sure they are making a good financial decision? Is this the right time to buy, or should you wait? Should you even consider the latest news at all if there is such disagreement from different sources?
If you don’t know what to do, consider following these 3 tips to ensure you are doing what is best for you and your family:
1. Don’t try to “time the market”
If you are looking to buy a home for yourself or your family, it’s important to keep priorities straight. You don’t want to buy the home you will be living in just because it is a good “deal”. You are not buying stock or a pair of shoes on sale – this is where you will be spending your down time and you want to make sure it is a home you love. Making sure that the property has some critical features is a better way to make the decision to buy. For example, if you have kids, is the home in a good school district? If you don’t own a car, is the home near public transit? If you love exercising and the outdoors, can you get to a bike path or out to the Gatineau hills quickly? Simply looking at the price and wondering if you could buy it cheaper next month will surely lead you to make a decision that you will regret.
2. Decide what is important to you and your family
If you want to avoid buyer’s remorse, don’t buy a home only because the price is right or market “experts” tell you this is the time to jump in. Take your time and figure out what is important to you and your family and then view properties that fit those criteria. The time to buy is not when interest rates or prices are low. The best time to buy is when you have found a great home, you have the necessary down payment saved up, you have secured financing and you are ready to invest in the local community you are joining. If all those things are in order, you are most likely to love your new place and enjoy all the benefits of home ownership.
3. Have your financing in check
Know how much you can afford and stick to your budget. If you need to sell your current home in order to buy, speak with a reputable local real estate agent who will give you a realistic view on the current local market. Also, spend some time shopping for mortgage rates. Find a good mortgage broker who can guide you and provide you the ability to lock in a better rate at a different bank if rates drop while you are looking for a home. Finally, don’t feel pressured to buy just because mortgage rates have risen a little lately. They are still at near historic lows and there is an equal chance that they may go down again in the future. By comparison, don’t wait to jump on that perfect home only because you believe the rates will go down soon – someone else may snap it up!
In the end, the best time to buy a new home is when it is a good time for you. If you know what you want in a home, you have found the right one for you and you have the financing ready to move forward with the deal, Go For It! Remember that no matter what the market analysts say, they are not taking into account your personal situation.
If you are looking to buy a home, or are thinking of selling yours, I would be glad to represent you and help you negotiate the best deal. Please contact me at steve@stevewalsh.ca.
Images courtesy of digitalart / FreeDigitalPhotos.net
