Is it the right time to buy a house in Saskatoon?

Everyone and their dog has an opinion on the Saskatoon housing market (or the Canadian market). Are we in a bubble, are prices going up, what are interest rates going to do, blah, blah, blah. Of course these are good things to know about and try to comprehend but basing your home buying decision on these factors alone is a bit off the mark.

Go back and remind yourself WHY you are thinking about buying a home. Are you wanting to own something to be proud of? Are you wanting to free yourself from your landlord and start paying your own mortgage? Are you looking to buy a large investment asset that you can live in? Maybe you just want to get out of your parent's basement? Whatever your driving factor is, if home ownership is your goal, then make the leap when you're ready. Trying to "time" the real estate market is just like trying to "time" the stock market. It is highly recommended you don't attempt it.

The bottom line is: interest rates are low. Very low. Historically low. You can lock in a 5 year rate for around 2.79%. As I like to joke, "it's free money". If you buy within your means, and you can afford your payments, you can pay off a very nice chunk of your principal within those first 5 years.

Some people like to make the point that real estate really isn't a great investment because if you look back at the past 100 years, the amount of appreciation of housing has been slightly better than inflation.  While this may be true, the fact these people are neglecting to think about is that you're gaining "inflation-like returns" on a whole lot of money that isn't yours! (assuming you have a large mortgage like most do)

The reality is, no one knows what the market will do, or what interest rates will do in the next few years.  The key is live within your means and if home ownership is your goal, make the move when you're financially stable and when the time is right for you! 

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Ryan Souster

Ryan Souster

REALTORĀ®
CENTURY 21 Fusion
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