Waiting until you know home prices are going up is too late if you want to maximize return.
Since the Alberta economy slowed due to low oil prices many people predicted a major price dip or crash in the local real estate market.
Here is what’s happened for the most part – with fewer buyers due to a slower job market, tougher lending rules and higher interest rates we had fewer buyer enter the market. Houses are still selling, only less are selling than before. What’s impacting prices most is, slower buying with homeowners trying to sell remaining the same. And when supply outpaces demand price decrease.
What might help the market this year is the lack of bad news. Bad news causes a large portion of people to hold off on large purchases. Bad news may also have an affect on some sellers, causing them to panic and try and sell when the may not otherwise. – Blake King, Realtor
I predict we may see price increases this year but only a little. The job market likely won’t improve much but should remain the same. There’s less talk of a market crash so fewer sellers will panic. Interest rates are still very attractive and houses are less expensive than 4 years ago. With houses priced a little lower more people will qualify again for houses they like, even though the mortgage rules have tightened.
So, when is the best time to buy? Right now. You can wait until you’re completely sure prices are at their lowest, because that number won’t be known until prices have increased (see chart below).
Also, one thing to remember is the fact that prices will continue to increase over the long term. So even if you buy a property before prices hit their lowest point, the price you pay will definitely be way lower than property prices 5 or 10 years from now (see chart below).
When is the best time to buy?