Post-pandemic thoughts – let’s move forward
Right now, we are living in post-pandemic times, and we are starting to see the effects that it had on industry and more specifically real estate. There were unprecedented housing spikes, bidding wars and homes were being bought before they could even hit the market. But now things are starting to settle down and people are starting to ask questions about purchasing homes at all. I get it. When interest rates were once less than 2% at times seeing the recent back-to-back interest rate hikes by the Bank of Canada things can feel unsettling.
Here’s what I know
People will always need to buy homes. Whether they are relocating, just getting into the market, upsizing, or downgrading, we all need a place to live. While there may not be the same sense of urgency as there was over the past year from buyers, homes are still selling and the days they are sitting on the market (DOM) are still at historic lows, meaning things are still moving.
Should you still buy?
This is a very common question right now. Buy or rent? Especially with the recent increase in interest rates. I guess my thoughts are “well who’s mortgage do you want to pay, yours or someone else’s?” There are ways to be smart about it. Buying within your budget is one of them. Getting pre-approved so you are making good shopping choices is super important, you don’t want to fall in love and realize that the home is not quite within your budget now, or it might put unnecessary pressure on the rest of your lifestyle. Buying within your budget is always important regardless of which phase of life you are in.
What type of mortgage is best right now?
There’s not really a one-size fits all mortgage. Each individual financial situation is different and thankfully there are lots of different types of mortgage products tailored to suite each one. For example, there are Variable rate mortgages (fluctuates with the Bank of Canada prime rate) or Fixed rate mortgages which have a set rate that you commit to regardless of interest rate fluctuations. Either one of these can work for different people and what they’re most comfortable with.
Where should you start?
Well, if you have come out of the pandemic and you are thinking it might be time to purchase a home or maybe you realize you might need a different type of home there really is no better time to start doing your research than now. There is lot’s of chatter about waiting until the market cools off. Here’s the thing, there will always be something happening within the real estate industry. So waiting for a time when there might be lower housing prices or lower interest rates or more inventory, who knows how long you could be waiting for. My advice is to start saving for a down payment and get pre-approved so when the time and house comes you are ready. There’s no cut and dry formula for the best way to buy a house, but there are ways to be smarter about it and that’s what a mortgage professional is trained to help with.