Latest Trends in Real Estate Mortgage
The real estate market changes often and if you’re thinking of buying a home or investing in property, it’s important to know and understand the latest trends regarding real estate and mortgages to determine whether the timing is right for you. Affordability is something you need to think about, which is why you’ll need to check on all the trends related to housing and real estate so that you’re informed in terms of mortgage rates and home types and can make a decision to buy a home.
It is currently a good time to buy a home because there has been a slight decrease in home prices, which is a nice change from what the real estate market was previously experiencing. Policy interventions have played a role in this, which has resulted in the market cooling down, making it more affordable in many ways for potential homebuyers to invest in a home. Many people will want to wait in hopes of the market becoming even more affordable but with real estate, this is never a sure thing and home prices can increase unexpectedly, which is why buying a home now is a good idea. If you focus on homes that are within your budget and invest in the right sized property, you’ll be getting your hands on a house you can actually afford and you can purchase the home you’ve always wanted now instead of taking a chance to buy it later on when the price point may no longer be affordable.
Lower property values have helped with affordability, which is a sign of relief for many prospective buyers who were unsure of how to proceed because the mortgage stress test, prior interest rate hikes, and tighter policies had made it extremely difficult to buy or invest in property. With current home prices remaining flat, homebuyers are experiencing relief in terms of affordability and are able to buy their dream home, which may not have been a reality the year before.
There is also a pause in demand as many potential homebuyers are not sure if they should move forward or wait, which has caused a decrease in demand, even with slightly more affordable pricing. While there are more affordable options available, it is still difficult for a lot of interested buyers to purchase a home because of all the requirements needed and this is especially true for first time home buyers who have a very hard time acquiring a mortgage to buy their first home. Between the stress test, policy measures and the down payment, it can be very difficult, if not impossible, for many potential buyers to actually buy a home, creating a pause in demand.
Collin Bruce in Edmonton can assist with all of your mortgage needs. Whether you need a second mortgage or wish to refinance, they can help, so give them a call and let them help you buy your dream home today!