To Buy Or Not To Buy, That Is The Question
We used to say only death and taxes were sure things, now we can add that no two economists will ever agree. You have likely heard a lot of bad things about the real estate market, some of it may have been true. Likely most was wrong or at least wrong about this market.
We’ve seen the headlines – Real Estate Markets Collapses, Hugh Price Drops etc. The article will quote some very convincing statistics. But like all stats they can say whatever you want them to say. While it is true some markets across Canada have seen a reduction in prices not all markets have. The headlines tend to focus on Toronto, Calgary, and Vancouver, all markets that have dropped, but also have had substantial increase the last few years.
But what about the most important to you – Stratford? We have done very well here in our beautiful city. In my opinion we are not in a depressed market here in Stratford, in fact we are doing rather well. There is no doubt houses are not selling as fast as the last 2 years, remember those were exceptional years and very uncommon. I would say we are now back to a normal, balanced market. Houses are being sold.
First time buyers are driving the market. With interest at record lows it is the time to buy and get into the market before prices start to climb later this year. If you are looking to upgrade your home now is the time. Selection is good, prices are good, interest rates are low, all the right conditions to make your move.
If you have been considering buying real estate as an investment all the above reasons apply. Selection, price, interest and with the influx of students coming soon this invest makes sense.
To buy or not to buy? The answer is to buy.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Re/max says the drop in house prices is driving first-time buyers to take the plunge.
Re/max says the drop in house prices is driving first-time buyers to take the plunge.
First-time homebuyers are being lured into the real-estate market by falling prices, lower interest rates, more selection and new government incentives, a new report shows. The ReMax real estate company said preliminary figures show sales were up in February, after a terrible January, driven by more first-time buyers entering the market.
The report comes alongside new Statistics Canada figures showing the first year-over-year decrease in new-home prices in more than a decade.
ReMax said lower prices and record low lending rates are prompting many first time buyers to "get off the fence, out of the rental, and into the market."
"While a sense of caution still prevails, more and more first-timers are finding it hard to pass up the chance to become homeowners in today's buyer-centric real-estate climate," ReMax said in its report released Wednesday.
"Buyers are clearly in control in most Canadian markets."
One client of mine said he and his girlfriend have finally waded into the market in Stratford after waiting it out for years.
"There is less pressure now," he said . "There are no bidding wars, you see houses sitting on the market a lot longer. It's a buyer's market again."
Lower interest rates have been an incentive.
"You start saying 'Okay, now it's looking very possible.' Before we would have handled it, but we would have been stretched thin for a couple of years. Now we can have our cake and eat it too."
Ottawa recently announced new tax credits of up to $1,350 for homebuyers to renovate their house or cottage. It also increased the amount first-time homebuyers can withdraw from their RRSPs from $20,000 to $25,000, and implemented a tax credit for first-timers of up to $750 to help cover closing costs.
ReMax said 22 of the 32 markets in the survey, or 69 per cent, "remain firmly in buyer's market territory."
As for first-time home buyers, they can be an indicator of a market recovery.
In any recovery you need to have first-time buyers because other buyers are just shuffling around housing. For a buyer than wants to move up, you need that first-time buyer to come in and buy from them.
Vancouver real-estate agent Shelly Smee said she has a handful of clients who are preparing to move up in the market now that house prices have fallen in Canada's most expensive city. She said some couples are looking at moving out of their condominiums and into a house.
"Some people are thinking now is a good time to move up and they can finally afford it," Smee said.
Smee also said some clients have also built up equity in their homes in recent years and are now considering upgrading thanks to record-low borrowing rates.
Interest rates have fallen dramatically in recent months as the central banks and federal government seek to ease the credit conditions in order to jump-start the flagging economy.
Last week, the Bank of Canada did its part by dropping the overnight rate down to an unheard of half per cent. Canada's chartered banks then lowered their prime rate to 2.5 per cent and having been lowering other lending rates including mortgages.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
First-time homebuyers are being lured into the real-estate market by falling prices, lower interest rates, more selection and new government incentives, a new report shows. The ReMax real estate company said preliminary figures show sales were up in February, after a terrible January, driven by more first-time buyers entering the market.
The report comes alongside new Statistics Canada figures showing the first year-over-year decrease in new-home prices in more than a decade.
ReMax said lower prices and record low lending rates are prompting many first time buyers to "get off the fence, out of the rental, and into the market."
"While a sense of caution still prevails, more and more first-timers are finding it hard to pass up the chance to become homeowners in today's buyer-centric real-estate climate," ReMax said in its report released Wednesday.
"Buyers are clearly in control in most Canadian markets."
One client of mine said he and his girlfriend have finally waded into the market in Stratford after waiting it out for years.
"There is less pressure now," he said . "There are no bidding wars, you see houses sitting on the market a lot longer. It's a buyer's market again."
Lower interest rates have been an incentive.
"You start saying 'Okay, now it's looking very possible.' Before we would have handled it, but we would have been stretched thin for a couple of years. Now we can have our cake and eat it too."
Ottawa recently announced new tax credits of up to $1,350 for homebuyers to renovate their house or cottage. It also increased the amount first-time homebuyers can withdraw from their RRSPs from $20,000 to $25,000, and implemented a tax credit for first-timers of up to $750 to help cover closing costs.
ReMax said 22 of the 32 markets in the survey, or 69 per cent, "remain firmly in buyer's market territory."
As for first-time home buyers, they can be an indicator of a market recovery.
In any recovery you need to have first-time buyers because other buyers are just shuffling around housing. For a buyer than wants to move up, you need that first-time buyer to come in and buy from them.
Vancouver real-estate agent Shelly Smee said she has a handful of clients who are preparing to move up in the market now that house prices have fallen in Canada's most expensive city. She said some couples are looking at moving out of their condominiums and into a house.
"Some people are thinking now is a good time to move up and they can finally afford it," Smee said.
Smee also said some clients have also built up equity in their homes in recent years and are now considering upgrading thanks to record-low borrowing rates.
Interest rates have fallen dramatically in recent months as the central banks and federal government seek to ease the credit conditions in order to jump-start the flagging economy.
Last week, the Bank of Canada did its part by dropping the overnight rate down to an unheard of half per cent. Canada's chartered banks then lowered their prime rate to 2.5 per cent and having been lowering other lending rates including mortgages.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
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