I've been having a lot of conversations with people lately particularly first time home buyers and the number one question they are asking is why aren't home prices coming down? I mean after all isn't this worldwide economic crisis supposed to bring the price of real estate down?
Under lying this question is this......"we are waiting for home prices to hit bottom before we buy". The reality is that here on Prince Edward Island there are two factors at play. First of all we have been fairing out pretty well and have so far not been hit as hard as some parts of the country, in fact the outlook is pretty good. Secondly, home prices here historically rise in a very modest and stable way. We don't have big boom and bust cycles.
It is true that there are some price adjusting going on and that will continue for the short term. However I don't believe there are is going to be any bargain basement prices happening any time soon in our market.
Having said that if people are looking for a bottom as it relates to real estate look no further than interest rates. They are at historic lows and it's hard to believe that they can come down much further. In fact when you factor in these low interest rates it almost negates the fact that home prices haven't fallen dramatically. And remember when you are on the other side of the equation as a home owner you will be happy that your most important investment will not only hold it's value but also increase in value...which is as it should be.
Bottom line (pun intended) right now is a great time to purchase a home. If you're ready I can help !
Contact me by phone 902 626 6856 or email email@example.com.