Its a Buyers market! Now is the time to make your dreams come true

The housing market is historically cyclical. Every phase of continued price increases has been followed by a period of declining values. The last up cycle was from 1983 to 1989. It’s therefore not surprising that after the boom of the last 11 years, we’re currently experiencing a housing market correction. In most parts of the country, the days of being able to profit from buying and selling a property quickly is over, at least for a while. Owning a home and building equity in real estate is likely to remain a sound long-term investment.

We are now experiencing a “buyer’s market.” What is a “buyer’s market”? Simply put- a market in which there is a greater supply of homes for sale than buyers who want to buy. For the first time since 1997 buyers do not have to rush into a buying frenzy and make irrational decisions in “bidding wars”. There are now more homes on the market in all neighbourhoods than there are buyers prepared to make offers. The number of days a home is on the market has been increasing causing declining sales figures over previous months. Qualified homebuyers are in an enviable position to negotiate.

Almost 85% of first-time buyers today start a home search online. However, many buyers are unaware that the data and websites they are viewing could be outdated. Now is the time to sign your self up with an experienced professional Realtor who has previously worked in this kind of market. Along with your Realtor, do your homework. Ask your agent to include your e-mail address on their database so you can receive daily MLS listings, both new and reduced prices, thereby gaining access to the same information agents receive though out the day. I offer this great service directly to my buyers that fit their personalized search criteria. This service truly saves the buyer from driving all over the place, wasting precious gas, and educates you about the current Toronto and Greater Toronto Area real estate market inventory.

If you are considering purchasing a home, this could be your golden opportunity! Here are some solid reasons why you have an advantage:

1) Pre-qualified buyers.

If you do not have a mortgage specialist-ask your realtor for a referral. When you start your home search you will know exactly what you are pre-qualified to spend and will only look at those properties that fall within that range and you don't waste your time being overwhelmed by the choices. You can offer on a home with confidence that the mortgage will be approved (if the house is appraised by the bank at or below what you offered).

2) Lower interest rates

Today’s long-term fixed mortgage rates are low. The Bank of Canada once again dropped it’s prime rate once again on December 10 to 3.5%. Todays historically low interest rates mean you’ll benefit from increased buying power. It is also a good time to take out a variable mortgage rate because interest is fluctuating and you benefit when it goes down.

3) First-time buyers who don't have a home to sell.

A back up of inventory is partially responsible for the big slow down. If you as a the first-time home buyer can get over your fear and confusion about what " the market" is doing, you not only will help yourself by purchasing a home, but you will be part of the overall solution to help correct this market.

4) This is a true buyers market

the best in 11 years! Decide on area, and must have amenities before looking at homes. This will save you from becoming exasperated by the experience. Now is the time you will be able to buy in areas that you thought you were never going to be able to afford in a “bidding war” market. It also means you can afford to be more discriminating and take the time to find a home with all of the features that you are looking for.
Sellers are often ready and willing to " make a deal" in many cases, regardless of the asking price. This translates to out of pocket money you might not save in a different market. You can ask sellers to take back a mortgage, and get creative in contract inclusions such as appliances and repairs required as outlined in the home inspection.

5) New Home Builders Sales incentives

Many builders are beginning to offer incentives to lure buyers. They do not want to be sitting on inventory. In some cases, they’re offering price discounts or complimentary extras such as granite kitchen countertops, custom cabinetry, upgraded carpeting, top of the line appliances and gourmet kitchens.
The fundamentals of the Canadian economy and today’s buyer’s market suggest that now is an excellent time for prospective buyers to explore opportunities to buy a new home.

The bottom line is that buyers have never had a wider selection than they do now, besides the ability to buy a home at prices that are considered by many to be quite affordable. It’s hard to say how much the housing prices will decline. Whether home prices continue to decline or go back up, this may be the best time for homebuyers.

Follow your Dreams, not the market! Will you regret not buying your first home in this down market? Will you be comfortable buying later in a potentially rising market? My professional advice is to seize the opportunity and do what is best for you and your family. Don't try to second-guess the market. Create your own economy by enjoying the incredible ongoing benefits, pride and enjoyment of home ownership. It is the Canadian dream. Make your dream a reality. It's truly your market! Confer with your agent, explore the market, then buy, buy, buy!