Here we are with just 3 days remaining in 2020, and we’ll skip any and all references to the misfortune that has made this year memorable for all the wrong reasons. We’ve been fortunate to see the real estate market in Canada remain resilient despite the economic struggles resulting from the pandemic, and in fact some places in the country seem to be in an even better place than they were at this time last year when it comes to median home prices.
What’s nice about this is it means that there is increasing value for homeowners to have in their home, and at the other end of the spectrum the Federal Government has introduced the FTHBIA (First Time Home Buyer Income Assistance) program to help people get into the housing market. This then has a positive affect for everyone who works in the business. If it’s a business that YOU are new to as a real estate agent, then we’ll say the same thing again that we’ve said here once a week all year – that our online real estate lead generation service for Canada here at Real Estate Leads is a great choice!
Let’s keep this focused on homes and the real estate market though, and there’s more good news according to industry experts and economists in Canada. Early 2021 may be the best time to buy a home in Canada, and here’s why they’re saying that.
Inventories Rising
There are so many different factors that are going into why there are larger numbers of homes being put onto the market AS A WHOLE in Canada. This doesn’t apply to all cities or locations, but for the country overall there are more homes being listed for sale. Not to the point that the supply and demand equation is anywhere near balanced out, but enough so that there’s a little more in the way of different homes with different features and different price points for people.
Record-Low Interest Rates Continue
Next, there’s the ongoing reality that interest rates continue to be at record lows in Canada. Much of this is by design on the part of the BOC (Bank of Canada) as a means of continuing to stimulate an economic recovery that benefits everyone. In particular, if you’re a prospective homebuyer who has a more the ability to put down a larger down payment on the home than the minimum, then taking advantage of these low interest rates could be hugely beneficial for you.
Getting in Ahead of Economic Recovery and Resumed Demand
We are all anxiously awaiting an economic recovery in this country, and when it comes there will almost certainly be a major uptick in qualified buyers, and this will mean increased competition for homes for sale in Canada. What we can expect to see once this occurs is much more in the way of ‘bidding war’s where homes sell for significantly over asking price. If you’re a would-be buyer who won’t have much in the way of an ability to go above a certain point when it comes to what you’ll pay, then it may be best to make your move in the real estate market sooner rather than later.
Ideal Time for Refitting a Home
Some of you may have clients who will be open to the possibility of buying a home that needs some ‘TLC’, as the expression goes. That means working on the home to improve it and make it either more liveable OR have greater resale value. If that means buying fixtures, appliances, coatings, and pretty much anything and everything else – they may well be paying a much higher price for these items as we get well into 2021.
There IS going to be very serious inflation in the not-too-distant future, and that’s a result of the Federal Government’s massive debt assumption over the last 8 months. Prices on everything will be going up, so keep that in mind if they’ve got their eye on a ‘fixer-upper’ that’s going to need a lot of refits. It may cost them a lot more to restore the home if they don’t do it soon.
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