The Canadian housing market has been stable for quite some time. The prices of homes have been steadily increasing over the past ten years, although half way through 2017 we saw the market slow its rate of growth slightly. Analysts came forward with concerns but September and October brought a healthy increase in prices and sales once again.
Healthy Sales Across the Country
Kelowna is not the only area where real estate is flourishing. Across the country, October brought healthy sales figures with Toronto home sales increasing by 12% and the Vancouver area increasing by 7.1% from September to October. Many were concerned that foreign buyer taxes on the large cities and increases in the overnight lending rate would cause a major cool down across Canada but the housing market has proved to be resilient.
Why Are Sales Important?
If you are looking to buy or sell a home in the near future, it is always a good idea to have your finger on the pulse of the market. It is very encouraging to see home prices and sales continue to increase at a controlled level, even after regulatory changes that were designed to cool the market.
Why is this encouraging news for both buyers and sellers? In most cases, if you are selling your home, you will be purchasing another at the same time. So for the most part, sellers are also buyers and if you are purchasing a home, you want to see your investment grow. If the market is growing, so will the value of your new home.
What if the Market Starts to Cool?
The real estate industry is very interesting because it can be extremely volatile at times and then turn pleasantly stable almost overnight. Just like the stock market, it will rise and fall overtime but as a property owner, you have to remember that the increases you realize will outweigh all of the decreases. Real estate is one of the best long term investments you can make. Here is a quick example: In 1984, the average price of a Canadian home was $76,351 (wouldn’t you like to find a home at that price in 2017!). Over the next 32 years, the real estate market went through some really tough times in the 90’s and the early 2000’s BUT, the growth in between those struggling periods was superior to the declines in prices. The end result? By 2016, the average price of a Canadian home was 442,264, an increase of about 480%.
When is the Perfect Time to Buy a Home?
You may be tempted to analyze real estate pricing charts over the past 50 years to try and discover patterns, so you can buy a home at the perfect time. There are two problems with that:
1.No one can ever accurately predict and beat the market
2.There is no perfect time to purchase or sell a home
How can there not be a perfect time to buy or sell? The value in real estate is in the long term game. If you wait until housing prices dip, you will be selling your existing home at a lower price, or if you are a first time buyer, you will have wasted X number of months or years waiting for the right conditions to buy when you could have been building equity in a home.
Everyday that you are not invested in the stock market, you are losing money. So what is the best way to save money when buying or selling a home? Look for VALUE. Certain homes may be undervalued due to their location or the seller’s personal situation. You also need to partner with smart professionals that can negotiate deals on your behalf, such as a trusted real estate agent, lawyer and mortgage broker.
How did the John Antle Team become the most recognized and trusted mortgage broker in Kelowna? We found ways to save our clients money. We worked hard for every single one and will continue to do so, regardless of the real estate market’s condition.
Ready to jump into the market and start building some equity? Give us a call today to secure a mortgage that provides you REAL VALUE!