Buyers Take Note - Everybody OUT OF THE POOL!
Fasten your seat belts AGAIN as we will continue to experience turbulence for the foreseeable future and beyond. It's a different kind of turbulence but rest assured, it will still be bumpy. (Specifically for one side of the plane).
Sheesh... We just came out of an extremely volatile market. Houses were jumping off the shelves to the highest bidder showing the greatest tolerance for risk. Sellers were counting their money and asking for more at the same time. AND... getting it!
"YES! I'll take it for way more than you want with no conditions including financing!" (They'll loan me the money, right? I'm such a nice guy...)
"While we're at it, let's forget about a home inspection. What could possibly go wrong with a 30-year-old home anyway?"
What happened? Was there a secret memo that made its way around the buyer circuit? "Pssst.. hey everyone, let's put the brakes on. When I say "now"... Everyone! out of the pool. Let's just stop buying and see what the sellers do. Ready? 1 - 2 - 3 NOW!
And so, it is. Inventory levels are back to where everyone wanted them to be. interest rates are (okay, rising) just now back to where they were when all of this Zorro activity (obscure mask reference) started! And the Buyers? They are, uh, they are out there... somewhere, snickering behind that big oak tree but we know you are there.
Okay, so enough of the sha-nana-fun-i-gans. Buyers are now being very patient. Waiting. Watching what is happening AND waiting to see what is going to happen. The perfect storm (for sellers) is that buyers will find that EXACT moment when prices hit their lowest point AND at the same time... interest rates stay at their lowest point. What a great time to purchase, right? Sounds great on paper or here in cyber print. However, this is a situation that may "happen" but is very difficult to predict AND react to with exact precision.
THE TAKE AWAY FROM ALL OF THIS:
Sellers: It is not all doom and gloom. Values are still way up compared to a year or 3 years ago. Homes are a longer-term investment and they are still paying off.
Buyers: There are reasonable deals to be had right now. Now IS a good time. Prices have corrected from the over-inflated past few months; interest rates are manageable and sellers are motivated.
BUT WAIT - there's more... Saving on one end at the expense of the other has a leveling effect OR may ultimately prove to be counter-productive. To wait to buy now you may (or will) save a few dollars on the house BUT you will end up paying significantly more on the financing over the years to come. Don't try to
If you find that perfect home and you are serious about buying, give me a call. I'm here to help.
Thanks for reading...
I'm here to help.
Andrew 416-276-5453
andrewhertel.ca
