16 Oct Why Now Could Be A Good Time to Buy A Property
While the Canadian (and doubtless, global) real estate market took a significant hit during the peak of the Covid-19 pandemic, it has, perhaps somewhat surprisingly, rejuvenated itself in recent months. In fact, according to the Canadian Real Estate Association (CREA), activity
throughout the month of August saw an increase of 33.5% year-over-year, with the sale of homes reaching an all-time high. Now, however, things are beginning to slow down again, something which is not unusual as we enter the fall season.
But why did sales surge at such a time?
Some of the main reasons why sales saw an increase could be down to interest rates, technology and consumer confidence levels. Let’s look at each of those in a little more detail:
Interest rates
A healthy housing market is essential for the health of the economy as a whole, and in knowing this, the Bank of Canada lowered interest rates during the peak of the crisis.
Technology
Virtual tours of homes, e-signatures and dedicated client portals have all been developed and perfected by realtors over the last 5 years, making it much easier for people to purchase properties and finance digitally. Lockdowns had no impact on most of the property buying process.
Consumer confidence
In a recent report by Mortgage Professional Canada (MPC), it was found that 59% of the people who took part in the survey, had higher incomes or incomes equal to the amount that they received before the pandemic, and for those that took a pay cut, they believed the situation would soon improve.
With low interest rates, high consumer confidence levels, the finances to purchase a property and many digital options for financing and closing a sale, the real estate market is actually pretty healthy. Provided nothing unforeseen happens in the immediate future, the next couple of years are looking rosy for both first-time buyers and move-up buyers, and experts don’t think the rates will change dramatically, and first-time buyers can get an extra boost from two government incentives, the First Time Home Buyers Incentive and the Home Buyers Plan.
So, if you’re considering buying a property, this could be the right time; to discuss your options in more detail, talk to a mortgage broker who can go through your individual circumstances with you, and help you to determine whether buying a property now, could prove fortuitous.