If you’ve been on the fence about whether now is the right time to buy, trying to figure out your next move can feel confusing. That being said, Edmonton home prices are down and mortgage rates remain low – two facts that may not be true for long. Even though Edmonton real estate has a proven track record over time, trying to wait out the market can backfire on you and here are the reasons why.
1. Edmonton Is In A Buyer’s Market
When you see reports that the national average sales price is on the rise, keep in mind this is only national – not local.
Despite Alberta’s transitional ups and downs over the past little while, Edmonton and area comprise one-third of the total number of job increases in Canada. In fact, Edmonton ranks second only to Vancouver in recent job growth.
This, combined with a huge jump in weekly earnings and uncertainty over the economy has created a slow yet stable market for Edmontonians- with an increasing amount of inventory available and not enough buyers.
2. Home Builders Are Offering Incentives And Great Pricing
With depressed real estate prices in the area, many new home builders in Edmonton are promoting incentives, concessions, and great pricing to buyers. While this has made it hard for existing homeowners to sell in a buyer’s market, it’s great news for buyers.
While incentives have come down over the last little while – when sellers and builders were offering everything from brand-new cars to tens of thousands of dollars in upgrades – there are still plenty of incentives to make buying a home now even more attractive.
3. Take Advantage of Early Equity
As you’re probably aware, every mortgage payment you make towards your home allows you to build equity in a place of your own. As your equity grows, so does your financial flexibility – meaning you can use the equity in your home in exchange for other forms of credit at a much lower interest rate.
Also of note, when you buy a new property in a developing area, you are likely to benefit from increased property values as nearby amenities crop up. For this reason, buying new in a new area is the ideal equity generator as increased equity is always reflected through increased value of a home.
4. Interest Rates Are Low… For Now
The Bank of Canada has maintained its overnight target interest rate for some time with expected real GDP growth of 2.3% in 2017. What does this mean for you as a potential home buyer? You can’t count on low rates always being there. The cost of borrowing is likely to go up in the months to come.
Stable, low mortgage rates have kept the housing market strong, but mortgage rates are definitely facing upward pressure as lenders now face higher mortgage costs due to new market rules. Unstable market conditions are also pushing lenders to pay higher rates on the money they raise.
The choice to sit on the fence with a “wait and see” attitude about buying a new home can end up costing you big in terms of missed opportunities for builder incentives, increasing competition down the road, missing out on valuable equity, and an increased cost of buying when mortgage rates go up. So don’t wait; see how you can take advantage of Edmonton’s great market prices, by visiting us at one of our showhomes today.
Photo credit: stacked houses, percentage