Should I Wait?
If there was one word that could accurately describe 60% of today’s mindset towards the real estate market it would be INDECISION. Many buyers and sellers have pushed pause on making a move simply because they are “waiting to see what happens”.
Buyers and sellers are hopeful about the real estate market for different reasons. Some buyers believe prices will go down since we just experienced more than 20% increase over the past two years. Conversely, some sellers believe that since other markets across Canada had much greater increases, we still have room to grow. Opposing perspectives can cause a deadlock in decision.
Here are a few reasons making a decision to move sooner than later could be in your best interest.
First, if you’re a seller, less homes for sale equal less competition. Too many houses on the market could cause your home to sit longer than anticipated. Less competition in the winter means your home has more opportunity to stand out and thankfully will be seen by serious buyers. As a seller, it could be to your advantage to capitalize on the current low inventory and sell now.
Second, if you’re a buyer, interest rates will likely increase. As rates increase, purchasing power decreases. A counter argument could be “but what if prices drop”. While nobody can predict exactly what the future will bring, one thing is certain, even if prices soften slightly, the cost of buying will likely increase alongside any price drop. Therefore, a lower price will be absorbed in higher payments and won’t matter as much in the big picture. As a buyer, locking in current rates could keep you from being ‘priced out of the market’ months from now.
Third, what if you’re planning to buy and sell? It’s possible that your current mortgage rate and balance could be transferred to a new property and blended with a new mortgage. Naturally it’s best to talk with your lender as terms and conditions differ from one to the next. What’s most important in this situation is being clear about why you want to move and if a potential cost difference is worth it. If there are specific reasons you need to move, chances are the benefits will win. However, if moving is simply a want, depending on job security, additional living allowances and expenditures, it may make sense to hold off until economic conditions have settled.
Most importantly, if you’re thinking about buying or selling you want to get more information to ensure you’re making the best decision. Whether you’re a first time buyer, thinking about selling, or just want to talk about what options might be available for you, contact us today! We’d be happy to see how we can help you achieve your real estate goals!
Jason Rustand with RE/MAX Real Estate serves with the highest level of integrity and excellence every time. For more info on this topic or others related to real estate contact LIKE our Jason Rustand Team Facebook page, call Jason direct at 780.919.0004, email email@example.com or visit WeSellLeduc.com