(Newswire.net — September 1, 2019) — Is this a smart time to purchase a home or other kinds of real estate in Canada? There are several factors that make the answer “yes,” but it helps to understand all the variables involved in the equation. People buy real estate for different reasons, so not everyone would agree that now is the “ideal” time to buy for every conceivable purpose. Here’s a quick look at the current state of the Canadian real estate market. For investors who want rock-bottom rates, it might be smart to wait a few months and see what happens. For the average consumer who just wants to buy a home, now is perhaps the best time in years to make a deal.
Interest Rates are Very Low
Interest rates for home buyers are at an all-time low. That’s true in most developed nations right now, so Canada is no exception. The good news for buyers is that they can lock in a low rate for up to 30 years. It’s hard to beat a chance like that. On the other hand, it is possible that rates could still go down, so some bargain hunters will want to wait and see.
Fear of a bubble is waning in Canadian real estate, which means the market is a bit more stable now than it was this time last year. Shoppers who dread “the bubble” will always be with us, but the huge majority of house shoppers are more worried about their specific interest rate on a mortgage and the amount of down payment they need. Not everyone bases decisions on macroeconomic principles and trends. Bottom line: Rates are at historic lows, so locking in a 30-year mortgage this year is going to be a good deal in the long-term, no matter what happens with rates in the near future.
The Winter Season is Coming Up
Even though Spring is typically the busiest time for buyers and sellers, the winter season offers some very good deals. For better or worse, many people decide to sell their homes as the year comes to an end. The decide, call an agent, place the property up for sale and then wait for offers. In many cases, they are not able to sell until spring. But for motivated buyers and investors, the winter months can mean getting in on new deals early and snagging attractive properties at bargain prices. The end of 2019 and beginning of 2020 could be a “perfect storm” of low interest rates and a good supply of homes for sale. That spells positive things for prospective buyers.
Down Payments Mean a Lot
No matter the prevailing market conditions, buyers often choose to buy as soon as they are able to come up with a 20 percent down payment. For many, it takes years to save that much money and waiting any longer can seem like torture. But for those lucky people who are just now reaching the 20 percent mark, year-end 2019 will have some very good buying opportunities as a result of two key factors: a strong supply of homes for sale and record-low interest rates.