Money Matter: Money is Cheap!

Everybody thinks that the housing market is going to collapse soon. I've got news for you, most likely it won't. Why you ask? Money is cheap. Even if it goes up a little bit, Money is cheap right now. I have buyers that can buy houses in cash but they do not want to tie up their liquid cash because the interest rates are so cheap that it would be irresponsible not to use the banks money to finance their investments.

Who controls the housing market, its not the population, its not the job market, its not unemployment. Its the government of Canada and the Banks. The interest rates drive the economy. It drives the market and it slows it down to a halt.

If the Interest rates go up a percent, it might slow down the economy, but do you think a 3% - 4% mortgage would kill the housing market? What it would do is drive some people who shouldn't be home owners out of the market, plus it will put more houses into the market allowing it to become a buyers market once again, lowering prices, then buyers who are on the fence right now because of high prices will come out of hibernation and then the market will get hot again.

Its a cycle. It happens every few years. The driving force, money prices. So for right now, money is cheap enjoy your spending spree.

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Ernie Arrizza

Ernie Arrizza

Sales Representative
CENTURY 21 Kelleher Real Estate Inc., Brokerage*
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