The experts haven’t said that we are at the bottom of the house price hill, but the real estate market is hopping in some areas. The key factor ruling the market right now is affordability.
The Toronto Real Estate Board reported that May sales this year out-stripped last year’s mark. And prices still declined one percent.
April 2008 was the high water mark for the prices in Toronto.
The opportunity here is in the decline in prices AND ultra-low interest rates.
You can’t really time the market. Will we know when prices have bottomed out? Only when they start rising again.
If you are making a decision to buy a house because you have a baby on the way, and you need more space, you shouldn’t try to time the market. You should buy the home for what it is—a home, not an investment.
If you are waiting for a further decline in house prices, you could find that happens, but that the interest rates rise. The interest rates are at all time lows and they likely won’t stay there (and they can’t get much lower). The US has seen an increase already. Maybe prices will come down a little bit, but if you see the interest rates go up, then it’s really a wash. Small increase in interest rates negate large drops in prices.
Want to see the difference? I can show you.