Bank of Canada dropped the prime lending rate 0.25% and the banks followed. Further assurances were given that the rates are expected to remain low into 2010.
Prices have become more affordable and we are seeing an increase in home sales above what is typical of the spring market. This means that 'serious' buyers are moving fast to scoop the better homes as soon as they hit the market, typically being sold in only a few weeks.
What does all this mean to you? Money is cheap (if they lower it any futher they will be paying us interest), prices are extremely reasonable, sellers are motivated. If you have any intention of buying a home get yourself a pre-approved mortgage and shop with the thought that if you like a home, give it serious consideration as it might not be there later!
Buyers are not as much disappointed as they are frustrated as the luxury of time seems to be eroding, at least in the market up to $500,000 and even some of those homes are moving.
One other point to consider is that some sellers are pricing high thinking someone just might, maybe, possibly give them an offer at that range. The reality is they would accept an offer much lower, sometimes much, much lower than you would think. If you find a house you like, make your offer at a number you feel is fair, many sellers are playing dangerous games that could cost them a sale! Be bold and you may just end up with a dream house!