25 Mar Should I Buy a House Now?
Thinking of buying a home in today’s economy? While recent predictions on the state of the Canadian housing market are not exactly promising, there is good evidence that now is a good a time as any to start shopping for a home. International economists say that Canadian homes up for sale in the market are overvalued, which can dictate the state of the Canadian housing market in the immediate future. Predictions of Duetsche Bank analysts point to this same conclusion when they say that real estate in the national housing market is higher than the median and higher compared to average rental rates. However, these numbers are not likely to lead the Canadian market to a crash anytime soon. Here’s why.
Higher Chances for a Soft Landing
Instead of a catastrophic real estate crash, experts are expecting a softer landing or one characterized by the gradual lowering of real estate prices and the number of sales, and none of the sudden depreciation and drops in prices that indicate a market crash. One reason why this is likely is because demand is keeping up with supply. Records show that the numbers of newly-built homes and condos being sold are on par with historical averages. Sales are so steady, in fact, that claims of overbuilding, with no demand to counteract the investment in real estate in big cities like Toronto and Vancouver are largely unfounded. If there is one area of concern, it could be that there may be a slight disparity in the kind of real estate properties being put up for sale and properties that buyers are looking for. For example , there is an increasing trend towards the building of one-bedroom condos, when data suggests that more and more families are looking for apartments, condos and homes offering family-friendly accommodation.
What Experts are Saying
Experts will not hesitate to tell anyone with the money to buy right now, just as prices are getting comfortable. If buyers have the money now, there is no need to wait for housing prices to fall. Homeowners can weather lowered real estate prices during this period by putting down the highest down payment they can afford to build equity on the property and to opt for a fixed home mortgage.