Well that happened quickly! We have all been plunged into a new and changing real estate market with the sudden increases in mortgage interest rates and, if you’re looking to buy your first home, upsize your family home or purchase an investment property you may have felt some fear or uncertainty, not really knowing how it will affect your dreams and your decision to move forward.
If that sounds like you, rest assured that there are plenty of opportunities and reasons to be positive. You can continue to pursue that dream of home buying and investing and make your dreams come true.
With the rise of interest rates, inevitably the pricing of homes comes down as the average person’s borrowing power comes down.
If you were looking at buying a home in the previous 6 months, there was an extreme level of competition for very few homes. Now, there are more homes to choose from, very little competition and they are at a lower price! That’s a win for you, the buyer!
Other key advantages of lower home prices are the fact that the down payment you saved for may not have to be as large as you had anticipated, leaving you with more cash for furnishings and other expenses. You can now put down a greater percentage of the purchase price as a downpayment, requiring you to borrow less! For example, your 15% down payment 6 months ago could now be 20% and now you can avoid paying CMHC mortgage insurance premiums!
Another savvy buyer win! Something else to consider is as interest rates climb, they can also come back down and as rates come down, the waiting buyers flood back into the market. This will increase demand and the housing prices will go up. It will accelerate the appreciation and value of your home or investment, making you money and a winner in the housing market as a savvy buyer.
I’m here to help you be successful and navigate these changes in the real estate market to ensure you win and make your dreams of home ownership and investing come true.
– Paul Mann, www.mannestates.com