The snow is melting, the sun is shining, spring has sprung and the sellers are...DISCOUNTING! I read an article recently with the headline 'First Time Buyers Are Screwed'. I couldn't disagree more, and here's a few reasons why;
Interest rates are at an all time low. On 3 year fixed rates from 2.49% (www.anewlovemortgage.com), many young people and first time buyers who weren't able to qualify when rates were higher, are now able to qualify and purchase property. Those buyers who were holding off on purchasing because they couldn't afford a home they'd be satisfied with are now able to afford that home of their dreams while still working within their monthly budget. Think about it...a $300,000 mortgage at a rate of 2.49% over 25 years comes out to a monthly payment of $1344. So the question is no longer 'can I afford to buy?', but 'can I afford to keep renting?'
The last several months have seen higher amounts of inventory come on to the market in the Saskatoon area. Last week there were 1602 active listings in areas 1-5 as opposed to only 1256 at the same time last year. It's definitely a buyers market out there and the high inventory levels are prompting many sellers to part with their properties for significantly less than asking price. What if you could buy that house that was $400K last year for only $350K now? Combine that with the low interest rates and you've got yourself a pretty sweet deal. Check out these stats!
Builders are getting in on the discounts too! There's many well known and respected developers in Saskatoon who are slashing prices and blowing out their product. That brand new home of your dreams might not be so far out of reach. Contact me and I'd be happy to share with you a list of reputable builders who want to save you money and get you into one of their homes.
So do I think that first time buyers are screwed? Absolutely not! Saskatchewan's diverse economy will continue to bring people and jobs to our province and strength to the real estate market, making the dream of property ownership a reality for many. If you have any questions about the Saskatoon real estate market I'd be happy to share that info with you and refer you to a mortgage specialist to lock down a rate and make sure you're able to take advantage of the discounts. Call me anytime! 306.251.2511
Here's a link to the article I talk about at the beginning of this post :)