There’s a lot of uneasiness about the market conditions in the real estate market these days. The rising cost of borrowing has some Buyers feeling hesitant about taking on debt that could be difficult to service alongside the rate of inflation, and Sellers often feel robbed of the payout they missed as home prices have declined.  There has been a lot of change to adjust to… and I know more than anyone: change can be hard! But fear not: there’s no need to panic, and here are five reasons why.

  1. It’s all relative. If you’re buying and selling in the same market, your overall margins remain the same. You may not sell for as much as you could have, but you’ll also be able to purchase for less too, making the jump to the next property easier, and sometimes much more attainable!
  2. There are options. Inventory is higher than we’ve seen in years, and choice exists! Rather than feeling forced to buy the one and only house that becomes available in your preferred neighbourhood, you can often consider a few to ensure you make the best decision for your needs and wants.
  3. Lower down payments are required. Reduced prices mean a smaller minimum down payment will be required to obtain a mortgage. If you’ve been saving diligently to enter the market, your dream of home ownership could be realized sooner than you thought!
  4. Time is on your side. As the average time it takes to sell a property has increased and the intensity of activity has waned, Buyers are able to navigate their decision-making without feeling as stressed, rushed, or frenzied. There is often opportunity to ‘sleep on it’ and consider your next steps calmly, rationally, and without being swept away by impulsive emotion.
  5. Responsible real estate is back. Many offers are submitted, considered, and accepted that include historically ‘standard’ conditions such as obtaining financing and completing a home inspection.  This ensures you are insulated from risk or uncertainty and can protect yourself from a position that could be financially dangerous or expose you to litigation.

For all the reasons outlined above, NOW could be a great time to take advantage of current conditions, especially as a first-time home buyer entering the market.  There are many opportunities to snag a deal or achieve the real estate goals you previously thought were impossible or unattainable.  Increased borrowing costs have been offset by lower purchase prices to balance your overall mortgage payments and compared to historic levels, remain quite reasonable in the grand scheme of things.  Despite increased interest rates, the return is still better than paying rent … would you rather pay 5% to service your own mortgage, or 100% to service your landlord’s investment? Though the market seems a bit volatile, there’s no need to panic and a change in mindset may help you to see the opportunities before you. Stay tuned for another post about how you can benefit from investing in real estate – if you’re a tenant paying rent, you’ll want to listen up!

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