2019 New Year!

Welcome to 2019! Looks like we are in for an interesting year.  We Start the year with a declining house market, an election on the horizon, and mortgage rules that are tougher than we have ever seen.

So what does this mean for 2019?  As far as the declining house market goes, in my opinion, this is a great time to buy. If you qualify for a mortgage that puts you into a home that you feel you can live in for a number of years then the ball is in your court, time is on your side, and you can relax and make sure the people you are dealing with have your best interests at heart.  One of the realtors I deal with put it perfectly when she said this type of market is the professionals market.  Why is that?  In this market the high pressure of timing, the pressure of no subject offers, and bidding is generally off the table.  You now have time to make sure your realtor and your mortgage broker or lender are taking care of you in a way that caters to your needs and goals, and if they aren’t you also have the luxury of finding someone who will.  This is a great market for business’s like ourselves that cater to education and communication.  

We have a lot of clients that ask us about timing the market.  One question we frequently get is “Should I wait till prices drop further?”, You can, but there is always the risk of missing out on a home that could be right for you, as well as the risk of the market taking a sudden turn and being on the upswing as opposed to the down turn.  Timing the market is more to do with luck than anything else.  If you are buying a home for the long term, then the questions you should ask your self are:

“Will I be comfortable with this purchase for years to come?”

“Can I comfortably afford what I’m doing for the long term?”

“Does this purchase suite my needs and wants for now and going forward”

If the answer is yes to all three of those questions, then you will very likely be successful in your real estate transaction down the road no matter what you purchased it for in this market, as long as you are willing and able to hold on to it for the long term.  

Markets have up and downs but neither lasts forever and its also largely driven buy the reason behind the decline or the upswing.  The last down swing we experienced in 2007 was due to the U.S. economic crash, and we as Canadians where thrown into the mix and forced to go along for the ride. This down turn is due to our own current government wanting to slow our market so they are implementing rules that are making it hard for people to qualify for their desired mortgage, and this in affect has slowed the market. The difference between the two is that our own government has stimulated this down turn and our own government can also flick the switch and re-stimulate the market by loosening these rules should they choose to, or based on getting a new government in power (fingers crossed on the later!).  Did I mention this is an election year?  The current government has been getting a lot of flack for the strain they have put on the housing market so we may see some loosening of the rules based on the election in a matter of months.  If we get a new government in, we will very likely see some changes soon after they take power.  Any change to these new rules could impact the market almost immediately.

So to sum up my thoughts for 2019, as I said, we are in for a very interesting year.  Take advantage of the declining market if you have the ability to do so, make sure the people you are working with are catering to your needs and goals, and if they aren’t make a change, and last but definitely not least, make sure you vote this year as I feel there is the potential to change things on the horizon and if nothing else, we all have the power to vote!

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