Is now a good time to buy?

By Kathy Schmidt, Broker/Owner, Schmidt Realty Group Inc.

Is now a good time to buy?

That’s a question we’re being asked a lot lately! Rising interest rates and low inventory have some buyers waiting on the sidelines. That could be the right decision for you, but it’s important to also consider why buying now could actually be a smart move. Here are 3 important reasons making a purchase sooner rather than later could serve you well!

1. Higher rates are keeping prices down. The number of homes for sale on September 30, 2023 is lower than any other September in the past 5 years! Low inventory like this would normally lead to rising prices, but the impact of interest rates on monthly mortgage payments is keeping prices down. If the supply of homes stays low, when rates stabilize and start to come down prices will start to rise.  If this coincides with the high demand of the spring market, prices could rise noticeably…and quickly! Purchasing a home today with a variable rate mortgage* could secure you a lower purchase price while leaving your options open to lock into a lower fixed mortgage rate in the future.
2. There are a lot of vacant properties for sale. Those homes become expensive to heat and more work to maintain in the winter. This means some sellers will be more motivated to negotiate with you so they’re not the one paying for heating and shoveling snow at an  empty house. Especially in November and December, you might buy that house for less than you would in February when spring is on the way.
3. There’s a cost to staying where you are. If your current home doesn’t suit your lifestyle, there’s a cost to that. It might not be easy to equate that precisely to dollars, but if you’re spending an extra 30 minutes commuting each way to work or driving kids to school, that’s an hour a day of your life that you can’t get back. Your time is even more valuable than money.

If this makes sense to you, you’ll want to get started by finding out what properties have been selling for in your preferred area, and how fast they’ve been selling. This will help you figure out the right timing for you. Contact us anytime for a quick analysis of your favourite neighbourhood or price range!

*I’m a REALTOR®, not a mortgage expert.  Always speak to a qualified mortgage broker to get their professional advice on the best mortgage for you!