6 reasons why you should stop waiting and buy NOW

Are you on the fence about buying? I get it – the market hasn’t exactly been friendly to buyers lately, with super-low inventory and crazy interest rates. But that’s changing. 

Interest rates are still high, but for buyers who can afford to carry a mortgage right now, things are looking a whole lot sunnier. Here's why you should be thinking about getting off the fence and buying: 

1. There's less competition out there. 

The rate hikes have made it a lot harder to qualify for a mortgage, taking many buyers out of the running. Lots of people are in “wait and see” mode, trying to get a sense of what the market will do next. If you're tired of competing, this is your time for a bit of a break. Bidding wars and offer dates are no longer a sure thing, and you won’t have to face down dozens of other bidders to secure a home. 

2. Supply is up.  

There's a lot more inventory in the market right now, and here’s why. Before the last rate hike, prices were starting to trend upwards. Sellers who had been nervous to list finally built up the confidence to put their homes on the market. But then two rate hikes happened in quick succession, buyers backed off and demand for those shiny new listings dropped. These days, properties are getting less attention and sitting longer, as more homes come up for sale. Supply is growing, giving buyers more to choose from. 

3. Sellers are negotiating again. 

There are deals to be had out there: sellers are motivated and open to lower offers and conditions. I got my clients a great place in Mississauga for more than $100K under asking – and that was AFTER they had just reduced it by $150K!

I'm seeing a lot of terminated listings and re-lists at lower prices and homes and condos just sitting, stale. Based on my experience, the best-selling strategy right now is setting a fair price, accepting offers anytime with a bit of room to negotiate. Now even properties listed above your price range could be within each. That’s a big difference from the height of the market when places with asking prices IN your range often ended up selling for way more. 

4. Interest rates could go up again.

While many experts are saying we’ve hit the peak with this latest hike, that may not be the case. Some economists are warning that there could be another hike in the fall. That will make it harder to qualify and further impact affordability. 

5. Buying now will save you money in the long run. 

Interest rates won't stay this high. While most people realize the ultra-low rates we saw during the pandemic probably won’t happen again, rates will come down to a more manageable level once the Bank of Canada gets inflation under control. We hope!!

If you buy something that’s a great value right now, you'll pay more interest for a while. But when rates drop, home prices will climb, and you'll be farther ahead. At that point, you can refinance at a lower rate and win. 

If you've been sitting on the fence, the time to get off is NOW. The window of opportunity may only last until the next BoC announcement. If they hold, that will boost consumer confidence, driving up demand and prices, and you will have missed your window for getting a great deal. 

6. You need a home to live in. 

Let's face it, most people don't buy because of the market or interest rates or what's happening in the economy: they buy because they need a place to live. If you get into a place now and hold onto it long-term, you'll do fine. Prices may fluctuate in the short term, but they always go up over time. As I always say, it's not about time in the market. It's time IN the market that counts. 

Got questions? Get in touch anytime.