As I sit here at my desk, our office admin ladies are going crazy with "Multiple OFFERS!"arriving via fax, on three different properties on MLS. We have not see this activity since last year and then, it really was spurred on by the HST fears. This year it seems the lack of suitable homes to choose from is causing buyers to jump in and face the dreaded "bidding war'. Ironically the prices which are definitely on the rise are not seeming to be 10's of thousands over the asking price... but some are! WHAT DOES THIS MEAN FOR THE BUYER.. THE FIRST TIME BUYER ESPECIALLY?? This is the ever present reminder that right now.. today yes it is a sellers market...but TOMORROW? Experts talk about the mortgage rate hike predicted Tuesday, April 12th, 2011 Interest Rates will they go up or not? A recent Property Wire.ca article sums it up by saying "Up, down or nowhere at all." Once again, we are approaching another Interest Rate announcement by the Bank of Canada- this coming Tuesday, April 12. While we have no crystal ball, there are a number of factors present from which we can draw speculative expectation. The problem is that some of them are contradictory- and while in the past, some of these predictors could have meant a sure bet in any direction, the situation in which the Canadian economy is not typical. Also, we find ourselves right in the middle of a Federal Election campaign. If history is any guide, rates will remain unchanged, as the country technically is in a state of political instability- and the BOC has traditionally stepped into a less active role when Canadians are preparing to head to the polls. On the other hand, last week, many of the major banks raised some mortgage rates marginally- which is typically done in advance of an anticipated rate hike. It’s about striking a balance. Many springs .. in fact MOST spring markets come quickly and settle down fairly quickly when supply and demand balance each other out. Is the rising interest rate a concern? Absolutely.. but is it PANIC time.. no Experts suggest people are setting their budgets and if anything lowering their expectations not wanting to be swallowed in the ever growing sea of debt. Filled up your gas tank lately? Ouch!! Not going to stop driving my car anytime soon but it is a reminder that costs are up, jobs are still not plentiful, amortizations for the average mortgage just went up about $100.00 a month and few are getting raises to compensate. Just as it is getting sunny and warm the market is heating up. KNOW your budget.. know your costs...know the type of housing you want...find a trusted professionals mortage and realtors.. and get good advice BEFORE you shop! As wise people tell us... this too shall pass... but we all need a little help and advice till it does.
Monday, April 11, 2011
As I sit here at my desk, our office admin ladies are going crazy with "Multiple OFFERS!"arriving via fax, on three different properties on MLS. We have not see this activity since last year and then, it really was spurred on by the HST fears. This year it seems the lack of suitable homes to choose from is causing buyers to jump in and face the dreaded "bidding war'. Ironically the prices which are definitely on the rise are not seeming to be 10's of thousands over the asking price... but some are! WHAT DOES THIS MEAN FOR THE BUYER.. THE FIRST TIME BUYER ESPECIALLY?? This is the ever present reminder that right now.. today yes it is a sellers market...but TOMORROW? Experts talk about the mortgage rate hike predicted Tuesday, April 12th, 2011 Interest Rates will they go up or not? A recent Property Wire.ca article sums it up by saying "Up, down or nowhere at all." Once again, we are approaching another Interest Rate announcement by the Bank of Canada- this coming Tuesday, April 12. While we have no crystal ball, there are a number of factors present from which we can draw speculative expectation. The problem is that some of them are contradictory- and while in the past, some of these predictors could have meant a sure bet in any direction, the situation in which the Canadian economy is not typical. Also, we find ourselves right in the middle of a Federal Election campaign. If history is any guide, rates will remain unchanged, as the country technically is in a state of political instability- and the BOC has traditionally stepped into a less active role when Canadians are preparing to head to the polls. On the other hand, last week, many of the major banks raised some mortgage rates marginally- which is typically done in advance of an anticipated rate hike. It’s about striking a balance. Many springs .. in fact MOST spring markets come quickly and settle down fairly quickly when supply and demand balance each other out. Is the rising interest rate a concern? Absolutely.. but is it PANIC time.. no Experts suggest people are setting their budgets and if anything lowering their expectations not wanting to be swallowed in the ever growing sea of debt. Filled up your gas tank lately? Ouch!! Not going to stop driving my car anytime soon but it is a reminder that costs are up, jobs are still not plentiful, amortizations for the average mortgage just went up about $100.00 a month and few are getting raises to compensate. Just as it is getting sunny and warm the market is heating up. KNOW your budget.. know your costs...know the type of housing you want...find a trusted professionals mortage and realtors.. and get good advice BEFORE you shop! As wise people tell us... this too shall pass... but we all need a little help and advice till it does.
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