I’m working with a lot of buyers right now, and this seems to be a big question on their mind.
I think the first thing to say is that the real estate market has changed significantly since the time when our parents were buying their home. The issue of affordability has made it difficult to get a house that checks all the boxes. You may need to start looking at the process of purchasing your family home as a 2 or 3 step method. The key is to buy something you can afford comfortably, which will allows you to build up enough equity, which in turn you can carry to the next house purchase, and the next.
So, let’s talk about market conditions... we just had what everyone is calling the hottest sellers’ market in 2017, which was scary for many home buyers as they were forced to act quickly, offer more money for houses, and buy without conditions, having to deal with the possible issues and value decreases after the fact. If you wanted to buy a house last year you were probably taking a risk. Ideally, when purchasing a home without having your own house to sell, you want to try to aim for a buyer’s market. This kind of market usually has a lower demand, and sellers are more likely to negotiate, giving you the option of purchasing a house with more favourable conditions. And of course, you would also want to aim for a mortgage with a great interest rate as well. This ideal scenario is what most buyers are waiting for, but may not happen while you are ready to buy.
What should you do then? The truth is that unless you are looking to flip a house or some other purpose requiring you to sell in a year, you really should purchase a home whenever you are financially able to afford it comfortably, and when your market is at least balanced. Especially if you’re currently renting because you should be putting that money into in an investment that will pay you back in the future.
Even if that first home is not exactly what you envisioned, you will eventually get a chance to upgrade as your investment grows and house prices rise.
Thinking of making a move? Have any more questions? I would be happy to help!
Please feel free to contact me.