Unless you have been making a conscious effort to avoid all mentions of Canadian real estate, then chances are good that you have heard something about the intoxicating enthusiasm in the Canadian real estate market.
In short, the Bank of Canada has been keeping interest rates low since the Great Recession in an effort to keep our economy running rather than risk letting it sputter out, which has meant low mortgage rates for Canadian consumers. Combined with the fact that Canadian financial institutions have been much more permissive with their lending, this has made Canadian real estate more affordable than ever before. Something that more and more Canadian consumers are rushing to capitalize on before the intoxicating enthusiasm runs out and the eventual hangover sets in.
For proof, look no further than the real estate market in the GTA. In March of 2015, the real estate market in the GTA saw a total of 8,940 sales, which is a 11.03 percent increase compared to 8,052 sales in the same month in 2014. Likewise, the average price of these sales was an astonishing $613,933, which is a 10.03 percent increase compared to an average price of $557,982 in the same month in 2014. It must be mentioned that neither one of these statistics can be considered a singular occurrence, seeing as how these signs of increasing interest in Canadian real estate have been happening for about a decade now.If you have the slightest interest in owning Canadian real estate, then chances are good that you are feeling some of that same intoxicating enthusiasm about now. You should be, considering that the present is probably one of the best times to buy Canadian real estate that we can expect to see in our lifetimes.
In main, this is because the Canadian real estate market will not remain still for Canadian consumers who are too hesitant to make a move even when presented with such shining opportunities. Perhaps Canadian real estate prices will continue to rise with no signs of stopping for the foreseeable future, thus putting home ownership out of reach in spite of low mortgage rates. Or perhaps the Canadian real estate market will crash, causing financial institutions to raise their mortgage rates and restrict their lending enough to put home ownership out of reach in spite of plummeting prices.
Given that there are estimates out there predicting that 50 percent of Canadian homeowners will no longer be able to afford their mortgages should their mortgage rates rise by as little as 1 percent, the second scenario is probably more likely that you think, particularly since current mortgage rates are sitting well below the historic average of 5 percent.
Simply put, if you don’t take advantage of the current enthusiasm in the Canadian real estate market, then chances are good that you will regret it once the hangover sets in. If you are planning to buy, then you will miss the chance to lock in mortgage rates hovering at around 3 percent. Similarly, if you are planning to sell, then you will miss a seller’s market where you can expect multiple offers for more than what you are asking for your home and if you want to avoid a hangover, Call me today!
In short, the Bank of Canada has been keeping interest rates low since the Great Recession in an effort to keep our economy running rather than risk letting it sputter out, which has meant low mortgage rates for Canadian consumers. Combined with the fact that Canadian financial institutions have been much more permissive with their lending, this has made Canadian real estate more affordable than ever before. Something that more and more Canadian consumers are rushing to capitalize on before the intoxicating enthusiasm runs out and the eventual hangover sets in.
For proof, look no further than the real estate market in the GTA. In March of 2015, the real estate market in the GTA saw a total of 8,940 sales, which is a 11.03 percent increase compared to 8,052 sales in the same month in 2014. Likewise, the average price of these sales was an astonishing $613,933, which is a 10.03 percent increase compared to an average price of $557,982 in the same month in 2014. It must be mentioned that neither one of these statistics can be considered a singular occurrence, seeing as how these signs of increasing interest in Canadian real estate have been happening for about a decade now.If you have the slightest interest in owning Canadian real estate, then chances are good that you are feeling some of that same intoxicating enthusiasm about now. You should be, considering that the present is probably one of the best times to buy Canadian real estate that we can expect to see in our lifetimes.
In main, this is because the Canadian real estate market will not remain still for Canadian consumers who are too hesitant to make a move even when presented with such shining opportunities. Perhaps Canadian real estate prices will continue to rise with no signs of stopping for the foreseeable future, thus putting home ownership out of reach in spite of low mortgage rates. Or perhaps the Canadian real estate market will crash, causing financial institutions to raise their mortgage rates and restrict their lending enough to put home ownership out of reach in spite of plummeting prices.
Given that there are estimates out there predicting that 50 percent of Canadian homeowners will no longer be able to afford their mortgages should their mortgage rates rise by as little as 1 percent, the second scenario is probably more likely that you think, particularly since current mortgage rates are sitting well below the historic average of 5 percent.
Simply put, if you don’t take advantage of the current enthusiasm in the Canadian real estate market, then chances are good that you will regret it once the hangover sets in. If you are planning to buy, then you will miss the chance to lock in mortgage rates hovering at around 3 percent. Similarly, if you are planning to sell, then you will miss a seller’s market where you can expect multiple offers for more than what you are asking for your home and if you want to avoid a hangover, Call me today!
