During the past year increased inventory, new government regulations for home buyers, and stricter mortgage rules have slowed the market to an almost standstill. As a result, prices have fallen and increased days on the market to sell have pushed the eventual sale prices down further still.
Today, as every other day, we don't have a crystal ball and not even a super-realtor like myself (lol) has any way of knowing where the bottom of the market is. But what I can do is look at market-segment indicators that point to the overall trajectory and momentum of the market and help understand to best time to purchase and capitalize on your investment.
Looking forward, 2019 is a provincial election year. In typical political fashion, there's been talk of softening the new rules of Real Estate and the new taxes on investors and foreign buyers. Whether these are empty promises or hints at what is to come we won't know for a while. However, a more attractive market to investors and foreign buyers brings with it we may see an increase in activity and subsequently; rising prices.
On the lending side, the stress test that has crippled mortgage qualification for many buyers is rumoured to be on its way out. It has put the brakes on excessive borrowing and the time to relax the rules is now. The ability to once again qualify for a mortgage will encourage many buyers who have been waiting on the sidelines to step forward and make a purchase. Again, more demand means more buying, which will lead to the eventual increase in housing prices as well.
With these thoughts in mind, let's look at what I consider the best opportunity right now in South Surrey White Rock. As I write this article, there are 37 town homes priced under $600,000! That's 37 great options for buyers to buy into a family friendly home in a great neighbourhood. Many of these town homes are ones that previously sold nearly $100,000 or 15% higher - just twelve months ago when demand was high and prices even higher.
Consider the monthly cashflow angle: a purchase of $575,000 with 10% down at current interest rates will cost approximately $2700 per month for a mortgage. This while the average cost for renting a 3 bedroom town home in the area is $2500 per month. That's only a $200/mo difference between renting and being a home owner.
The overall cost, increase in selection, as well as the ability to take your time and shop for what you love (and negotiate a great price!) should make owning a town home right now a very attractive option for buyers. Start by talking to your mortgage broker to see what you qualify for. Then chat to a Realtor (insert shameless plug for me here...) to see if they can arrange for a tour to get a feel for what's out there. If you're not quite there yet, check out the local townhouse open houses that are welcoming every weekend in our area - but first, read my Open Houses FAQs.
Today, as every other day, we don't have a crystal ball and not even a super-realtor like myself (lol) has any way of knowing where the bottom of the market is. But what I can do is look at market-segment indicators that point to the overall trajectory and momentum of the market and help understand to best time to purchase and capitalize on your investment.
Looking forward, 2019 is a provincial election year. In typical political fashion, there's been talk of softening the new rules of Real Estate and the new taxes on investors and foreign buyers. Whether these are empty promises or hints at what is to come we won't know for a while. However, a more attractive market to investors and foreign buyers brings with it we may see an increase in activity and subsequently; rising prices.
On the lending side, the stress test that has crippled mortgage qualification for many buyers is rumoured to be on its way out. It has put the brakes on excessive borrowing and the time to relax the rules is now. The ability to once again qualify for a mortgage will encourage many buyers who have been waiting on the sidelines to step forward and make a purchase. Again, more demand means more buying, which will lead to the eventual increase in housing prices as well.
With these thoughts in mind, let's look at what I consider the best opportunity right now in South Surrey White Rock. As I write this article, there are 37 town homes priced under $600,000! That's 37 great options for buyers to buy into a family friendly home in a great neighbourhood. Many of these town homes are ones that previously sold nearly $100,000 or 15% higher - just twelve months ago when demand was high and prices even higher.
Consider the monthly cashflow angle: a purchase of $575,000 with 10% down at current interest rates will cost approximately $2700 per month for a mortgage. This while the average cost for renting a 3 bedroom town home in the area is $2500 per month. That's only a $200/mo difference between renting and being a home owner.
The overall cost, increase in selection, as well as the ability to take your time and shop for what you love (and negotiate a great price!) should make owning a town home right now a very attractive option for buyers. Start by talking to your mortgage broker to see what you qualify for. Then chat to a Realtor (insert shameless plug for me here...) to see if they can arrange for a tour to get a feel for what's out there. If you're not quite there yet, check out the local townhouse open houses that are welcoming every weekend in our area - but first, read my Open Houses FAQs.
And as always, don't even think twice before reaching out to me with any questions about townhomes, the market, or the home buying process. It has been my most sincere please to have helped hundreds of buyers like you and truly love that part of my job!
