This is likely the most common question we get these days, "should I buy now or will prices come down".
There is no one right answer and due to the complex nature of the economy it can not be answered with a definitive yes or no.
Likely the best time to buy will depend more on your own financial stability and current needs than the economic market place. This may be an excellent time to make a move for many people. When looking at your own situation bear in mind the following:
- current low interest rates,
- the balanced market.
- your job stability.
- your own housing needs.
- are you currently renting and want to invest in your future
- if you are selling with the intent to purchase an upgrade.
Interest rates are at a virtual all time low, there was a time when 7% was considered a pretty good rate, but right now mortgage money can be had for 4 to 5% depending on the terms and your credit rating.
The market has swung from a sellers market that we have had over the past couple of years to a more balanced market. Better for buyers and sellers both. House sales that happen virtually over night are stressful on buyers and sellers alike. Buyers sometimes feel that they were rushed, and sellers can wonder if they should have asked for more.
As a buyer, if you are renting, the longer you stay renting, the less equity you will build as time progresses. All the while you are waiting for the market to do something.
As a seller, if you are upgrading and are planning to sell and buy during the same time frame then the market ups and downs will mean less.
Your job or profession should be secure and stable, but this is a prequalifier at any time.
Look at our own market stability here in Westman and Brandon. It is strong, stable and conservative. We are not reliant on any one industry, we have a strong agricultural sector, a low vacancy rate, and we have Brandon University and ACC along with a one of a kind program the new Culinary Arts program.
As in the stock market, it is very tough to predict the lows and highs of the market place. If you wait for house prices to go down - they may not. If you wait to long - house prices will go up.
If the market takes an upswing then there will be upward pressure on house prices, and as the economy heats up, there may be an upward pressure on interest rates.
As I mentioned before, trying to time your purchase on the ups or downs of economy can be difficult. Even the financial experts can give no guarantees. One thing I can say is that over the long haul your house is one of the best investments that you will ever make.