So, I'm sitting here on a Tuesday evening in mid-November 2008 writing this blog and I've been thinking to myself this afternoon about the state of the market. Well, I personally don't think it's that bad. HUH?!?!? You're probably thinking I'm nuts. But, I don't think I am and let me tell you why.
The market is simply that - a market. Prices go up, prices go down, volumes go up, volumes go down. Either way, when you own a home there's not much we can do about the market. Simply accept the current reality, and make the best decision you can by getting professional advice from your Realtor i.e. me!
If you're thinking of selling and buying another home, go for it! Yeah, you might not get as much for your house as you might have a couple of months ago - but you'll probably not pay as much for your new house as you would have a couple of months ago either!
If you're thinking of buying your first home, it is definitely the right time. Why? Because real estate traditionally appreciates in value over time. Even the financial gurus in the banking and investment industries say that real estate is a typically safe investment, with a decent return on investment. But, like any investment, you need to live in your home for a few years to make money. And, with interest rates at their lowest point in a couple of years and being very stable, you can lock in now to a longer term and know what you'll be paying for the next few years. It's a nice feeling to know that in 3 or 4 years, your mortgage payment will still be the same (if you chose a 5-year term for example) i.e. no increase! But, you'll probably have higher income through either annual raises or promotions.
For those of you who are thinking that prices are going to fall, yes it is possible that prices can decline - but this usually only occurs when prices have appreciated over and above the norm - i.e. inflation. This is why cities like Vancouver, Calgary, and Edmonton are currently seeing large price reductions - because there were large price increases in the last few years. In other words? Prices in these cities are returning to normal - and I'm willing to bet they won't decrease to values below where they should be based on normal inflation.
Here in the Brampton area, prices are still increasing year over year - but this is most likely because prices in our area did NOT increase more than could be sustained over the last few years. We're very unlikely to see prices drastically fall because prices did not drastically rise over the last few years. See how it works?
Real estate really isn't that complicated or scary. I'm glad that my spouse and I bought our house ten years ago, as it was the best investment we've ever made. My mortgage payment hasn't increased in the last ten years - and the mortgage has been renewed twice. Somehow, I think if I were still renting, the rent would have increased!
So, get into the market. Go ahead. My numbers at the top of the screen.
Professional service. Expert advice.