Real Estate and Mortgage Market Favour Buyers

Real Estate and Mortgage Market Favour Buyers

July 21, 2010

It seems as though many British Columbians (and all Canadians) are hesitant about the housing market at the moment. We’ve heard anecdotes of people holding off on their decision to buy because they expect the housing market to soften further. That may happen, but realistically, the second half of 2010 seems to be a great opportunity for buyers. Don’t believe me? Compare today’s market to the previous peaks in 2006 and 2007:

• Mortgage interest rates are substantially lower now than they were in 2006 and 2007

• Home prices are lower than they were in 2006 and 2007

• Real estate inventory is substantially higher than 2006 and 2007

• There are fewer buyers to compete with and nobody has a gun to your head to make an unconditional offer

If you’re a buyer you can take advantage of all the above to find a great home, make an aggressive offer, get fantastic terms on your mortgage, and do it in a lower stress environment.

I realize that we have a vested interest in the strength of the housing market – so take what I say for what it’s worth. I think the facts speak for themselves – I’ll let you be the judge.

The following article also does a good job of speaking to the challenges of trying to time the real estate market:

Life Timing – Way More Important than Market Timing