We ARE the news!

It’s true, folks!  Not to sound over-confident, but real estate agents ARE the news.  The trends that are happening today in the market, will trickle down to the national news outlets in 4-6 weeks, where you will begin hearing about them on the evening news and in online stories.  What’s the problem with this?  Well, by the time you hear about what is happening in the real estate market, the market has already changed and moved on to something new!

Toronto and Durham region markets are up 37% over this time last year, and multiple offer deals are happening consistently.  It is only a matter of time before the same thing returns to Northumberland County, and do you really want to be involved in that again?  The plus side of the current market is that prices have remained stable during the past year.

Let’s play with a scenario.  I have a client, let’s call her Susan.  Susan really wants to buy a home right now but she’s waiting for the interest rate to fall just a little bit, because let’s face it, it’s scary where it is!  So Susan has decided to wait until summer when the interest rate is projected to drop just a little bit, to ensure lower mortgage payments.

If Susan finds a house she likes now, she can fairly confidently place an offer with the conditions of her choosing, and be the only offer thereby securing her dream home.  Let’s say she pays $700,000 and puts down a 5% deposit, with an interest rate of 5.59%, giving her a monthly payment of $4094.01.

By summer, the trends of Toronto and Durham region will have reached Northumberland, more people will be ready to buy, and housing prices will be on the rise again.  By then, Susan’s dream house may be priced at $800,000 and receiving multiple offers.  Susan will still put down a 5% deposit, but by waiting for the rates to fall, she now secures a 5.00% interest rate.  Fantastic news!  However, due to the laws of supply and demand, Susan’s monthly mortgage payment on her dream home will be $4420.20.

By waiting for a lower interest rate, Susan may end up paying and extra $326.19/month on her mortgage payment for her dream home, thanks to the laws of supply and demand.

The demand is on it’s way.  Now is the time to make a move, before the seller’s market kicks in again!