This year, an often asked question in the hyper local real estatemarket is “Is this a good time to buy?” Clearly, the answer to this question will vary according to individual circumstances. People who are trying to answer this question may wish to consider some of the following information.
One of the most basic questions is affordability. Some money is generally required as a deposit to make an offer on a Comox Valley home. An additional amount of money as a down payment is required for your mortgage lender to advance you a mortgage on your new home. More money is required to cover the closing costs associated with completing the contract of purchase and sale. Have you analyzed these financial requirements in your particular circumstance? Do you need someone to help you do this? As well, consider that sellers will often ask if a buyer has been pre-qualified for financing (assuming that financing is needed). Are you financially pre-qualified?
Interest rates are often a consideration when people consider borrowing money. According to Bank of Canada statistics taken from the Canada Mortgage and Housing Corporation, current interest rates are as low as they have been in 50 years. While the BC Real Estate Association is forecasting increases to interest rates over the next two years, there has been some recent speculation that we may see interest rate decreases in the very near term. Even if the rates drop in the near term, how long will interest rates remain at or near their 50 year lows before once again increasing? If low interest rates are a deciding factor for you, what do the current rates and the longer-term forecasts tell you?
If you have the money to buy Comox Valley real estate and you agree that current interest rates provide you good value (less money spent on financing leaving more for the purchase), is there a good selection of homes on the market? Take a look at the supply of homes on the real estate market.
Have you created a list of what is important to you in a home? The list may include things such as features, location, and condition. To see if there is a home that will meet your needs perform a basic MLS ® Search of homes to see what is on the market. While an internet search may provide you with some basic information, there is no substitute for first-hand knowledge gained through the viewing of homes when it comes to the location, features and condition of homes. When armed with this information you may be ready to buy Comox Valley properties. Crown Isle homes near the clubhousemay be your next dream home of choice.
Home buyers often only become buyers after selling. If you need to sell your current home before being able to buy a new one, will current market conditions affect your decision to sell? When trying to answer this question have you considered the selling and buying ends together? For example, if you make less money at one end, you may also spend less at the other. Conversely, if you make more money at one end, you may also have to spend more at the other.
If you have the money and the time, and you have given some thought to what you need in your next home, do you think that now is the time to move forward as a buyer? If you need more information to help you decide, or if you have decided to buy or sell, contact me Brett Cairns of RE/MAX Ocean Pacific Realty to help you with your real estate needs in the Comox Valley.
by Brett Cairns