Money

Heather Hartt, real estate expert

buyingcanada (Aug.14.07)

Christiane emailed us at expert@sweetspot.ca: I’m renting a condo and want to buy a house. Is it a seller’s market, and if so, should I wait two to three years to buy? What is your opinion?

…and our real estate expert, Heather Hartt, answered:

A sellers’ market exists where there is very little supply and many buyers looking for a suitable property. If the current market statistics suggest that inventory is high, prices are generally kept in check and there would be what we call a stable real estate market. My advice, especially for buyers who are making the jump from renting to buying, is to do it as soon as possible within their financial means. Consider:

When you purchase a property you enter the market at that moment in time and begin building equity while riding the market increases.

The price of a home will only be higher in two or three years. Most homes maintain their value with proper maintenance, with appreciation depending on the area. Homebuyers can be confident that if they purchase in the right area and pay fair market value, their investment will continue to appreciate on a positive incline. (So for homebuyers, especially first-timers, each year they wait to purchase, they chase the market appreciation.)

For some buyers who are marginally able to afford the down-payment and mortgage requirements of a house, the market could surpass their level of affordability if they wait too long to buy. Unless your income and savings are growing with the same consistency (or higher) as the housing market, the gap between the price of a home and an ability to afford one will become larger as time passes.

Heather Hartt is a top producing Sales Representative with Harvey Kalles Real Estate Ltd. www.heatherhartthomes.com

Tags: affordability, Ask an expert, money, Services and Stuff

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