Most people these days are saying not to buy anything, especially real estate. It is true big ticket purchases have slowed down this year of recession. Is it a good time to buy or should you wait for the market to dip even lower.
I believe that the market will start to pick up in the new year despite what people are saying around the water cooler. One of the major reasons that the market will pick up drastically next year is that the bank of Canada this week dropped their interest rates and they are planning another cut very soon. This will force most mortgage and bank companies to drop their mortgage rates very soon. This will allow people who could not afford mortgages in the past to qualify for them like in the past 3 years before this one. Another reason people will have more money is that gas prices have dropped and also our dollar has dropped. For people traveling to the states that is good for gas but not good when you exchange your money. Here is the thing because the dollar has dropped foreign and U.S. companies will invest in Canadian manufacturing jobs again because of the lower cost here and there will be more manufacturing jobs gained and possibly some people who were laid off recently will go back to work because of the renewed interest in Canada and their lucrative cheaper market. Having a cheaper gas price is just a given that all of us will have more money in our pockets. An extra $200 a month means having more money to spend or saving for that house or condo. I believe it is all a cycle and with the way everything looks like we're heading for a real estate boom like we have had in the past few years.
So here's the thing. With the prices going down and so many options to choose from right now and Christimas coming up (which is usually a slow period for real estate) this is going to be a great time to buy and put in an offer for that house you have been looking for. It is something to think about before the prices start going back up 20 or 30k.