What's Happening in our Market
The chatter that surrounds what is going on in today's housing market could be comparable to sitting in an old coffee shop with the regulars on a Saturday morning catching up on the week's gossip. Now more than ever it seems there are circulating questions, concerns and speculation on what has already happened and what is coming down the pipe for Real Estate in our area. When you're in that coffee shop it's important to keep in mind that most real estate news is 2-3 months behind once it gets to the coffee shop and on its way out the mouths of those older gentlemen smoking the pipes. Why is it that's who I picture at the coffee shop?
We are going through a time period that is extremely uncomfortable and I speak with clients daily who have anxiety about selling now and looking for their next home or fear from those looking to buy, wondering if they are overpaying now and their home will depreciate over the coming years.
Right now it appears that a recession is certainly on the horizon but that is not necessarily a bad thing. When we face situations like this the Bank of Canada increase interest rates to reverse inflation and in doing so mortgage rates end up suffering. If you purchase a home now with a higher interest rate you can look at refinancing after one full year in your mortgage and lower the rate as it comes back down. I've always been a fan of variable rate mortgages since they often don't involve pay out penalties and have options not given in term mortgages.
The other thing to keep in mind is historically home values have started to increase near the end of a recession. Your home may not be appreciating at an accelerated rate but at a healthier, more even, steady incline. You can be comfortable knowing that the home you are buying now is very unlikely to depreciate over larger periods of time, especially in mid to small markets such as here in the Maritimes.
The market has shown signs of slowing down but is certainly still chugging forward. In this current market the inventory is chasing demand. As long as there remains a gap between demand and supply the market prices will remain stable. You can be sure that purchasing a home now means buyers can expect their mortgage payments to stay relatively the same but renters will certainly feel the hit with rental increases.
We don’t expect our clients to not have a ton of questions and their own individual set of concerns, but when it comes to a big life move and decisions it just makes it that much more important to have a knowledgeable Realtor on your side can that cannot just make this an informative, convenient move but also a fun one.
