Over one week ago I sent out an email newsletter to the Real Estate Evolved community; here is an excerpt:
“For all intents and purposes, I believe we will be back in a balanced market on December 1st so if this happens it will be trumpeted with great fanfare by the REBGV sometime in the first week of December in their monthly report.“
It’s true; the return to a Balanced Market is almost here.
What this means is that right now it’s bargain-hunting time for Buyers, but only if you act fast while a decent selection is still available. So are you pre-approved for a mortgage rate hold?
Potential buyers often say they’ll wait for the market to “bottom-out”.
So is that at the precise point when:
– prices start to rise?
– supply brings about a “buyers market”?
– interest rates start to increase?
Well even the world’s best economists are only able to pinpoint the “bottom-out” coordinates in retrospect, and at that time the opportunity has already passed by.
In my opinion, the important part of the buying decision at the present time is to understand the value of the low interest rates, and to take advantage while you can.
The value of a point off a mortgage interest rate over 5 years will be more significant than a 1% difference in the purchase price.
Of the three bullet-points above, prices are currently stable, supply (with best choices steadily depleting) is dwindling towards the return of a balanced market, and favourable interest rates are still available.
So we’re just leaving an over-supplied market that offers buyers:
– the best selection of homes available,
– no pressure whatsoever to rush due diligence,
– an opportunity to make lower offers, and,
– a good chance buying at below assessed value, and perhaps beyond their expectations
While I don’t have a crystal ball I’d say to Buyers, we’re as close to the market “bottom-out” as we’ll get for a while.
Since all real estate is hyper local then allow me to review your market area, or the area you are interested in. Call 778-878-0778, or email: email@example.com