Should You Buy a New Home Now or Wait?
As we near the end of 2020, and a further surge in Covid-19 cases, should buyers wait? Or is it time to make your move in the real estate market? Here are some things to consider before you decide.
The first question to ask is what is my employment security? The impact of Covid-19 has not been uniform, with some industries seeing increased business activity and other industries being hit particularly hard. Before taking on the financial obligation of a new home, it is always important to evaluate ones income security. If you have a secure career and source of income, now may be an opportune time to leverage your work and income security and make your move in the real estate market.
With a very low Bank Rate of 0.5 percent one can secure very competitive mortgage rates in the region of 2 percent for 20 to 30 year mortgages. As the economy moves from reopening to recuperation, it will need extraordinary monetary policy support, and with consumer price index inflation close to zero, it is highly probable that we will live in a low interest rate world for some time. Now is the perfect time to take advantage of the historically low-interest rates.
For good reason, based on their individual circumstances, some buyers will delay their home-buying plans to see what happens after the pandemic. Those buyers choosing to wait are giving ready buyers less competition. Taking advantage of this time when some buyers are choosing to wait could help you secure the home of your dreams.
There is an inventory shortage in certain segments of the housing market in Oakville. If you are looking to purchase in such a segment, it is important to act fast when you find a listing that checks all your boxes. That means you need to be fully prepared with a pre-approved mortgage in place. And, you need to have made the decision to purchase. Delaying the purchase process to consider whether it may be better to wait, may result in your dream home being taken by another buyer.
No one knows the future. At the end of August home prices were up 1.5% nationwide. A recent panel interview of a number of leading economists had the majority predicting an average increase of 3% in the next six months, and a minority predicting a decline in prices. With the differing opinions, but with a majority expecting an increase in prices, it is hard to justify a decision to wait based on expected future prices. It ultimately depends on the supply and demand dynamics of your particular market. However, if you have secure employment, the necessary funds in place, and are ready to find the home of your dreams, then now is a very good time.
I have the expertise to find you your dream home in Oakville. I will act as your advisor and consultant and help you identify your needs versus your wants, show you the best neighbourhoods matching your requirements and budget, help you identify and find your dream home, and make sure every step of the home-buying process is taken care of for you. Contact me today to learn more.