5 Reasons Why Now Is A Good Time To Buy

Share

They say timing is everything. With the recent downturn in world oil prices and the challenges facing the Alberta economy, many homebuyers are wondering whether now is the right time to make a move in the real estate market. The good news is that there are some real advantages to purchasing a new home now.

1. Interest Rates are at an All-time Low

The past few months have seen a lot of people take advantage of the low interest rates offered by the banks. That’s a favourable situation for any homeowner with a mortgage. With lower monthly interest payments, more money stays in your pocket over the long-term. But if interest rates go up, your monthly expense could be higher.

2. It’s a Tight Rental Market

In a tight market landlords can afford to increase monthly rents. With low interest rates and a fairly competitive buyer’s market it makes sense to enter ownership as opposed to renting. At least then you’re building equity for yourself, not your landlord.

3. House Prices are Holding the Line, for Now

Right now due to the economy, Calgary builders are holding the line on pricing. But that situation may not last. In terms of inventory, land is still tight. We’re not in an over-supply situation and that’s one of the reasons pricing has stayed pretty strong. There’s not an over abundance of land to be putting new homes on. These conditions won’t last forever, though. Once oil prices start to rise, it’s a good bet housing prices will rise with them.

4. “But, I’m Waiting for My House Price to Go Up.”

Everyone wants to get the maximum value for their current home. But, if you’re waiting for prices to go up on your home before you sell, you’ve got to remember that other home prices will go up, too. Say you wait and get a 10 percent increase on your $500,000 house for an extra $50,000. That’s great, but that $800,000 house you want to move up to is going to be $80,000 more expensive, so you have a net loss of $30,000. Everything is relative.

5. Lot Selection is Going Fast

Like many other builders, Morrison has a good inventory of available lots in some communities, while in others the selection is more limited. In New Brighton for example, we’re down to our last five lots and Auburn Bay is soon going to be wrapping up the midmarket estate part of the community. So, if a person wants to live in certain communities - especially those that are more established, they don’t want to hesitate.

Bottom line — if you’re going to buy in Calgary, real estate is always a great investment. There might be some peaks and valleys, but in the long-run it’s been shown to always be worth more.