Posted On Oct 28, 2024
Why Waiting to Buy Your First Home Might Not Be the Best Idea
Have you been saving diligently for your first home, hoping that interest rates will drop to what you consider "normal"? If so, you’re not alone! Many Albertans are in the same boat. The Bank of Canada has suggested that some buyers are holding out for even lower rates than we have now. However, it’s important to recognize that current rates are similar to those we saw back in 2017. Check out historic rates here. So, what’s the advantage of buying a home today instead of waiting? Let’s talk about supply and demand.
The Impact of Supply and Demand
When a lot of people decide to buy homes at the same time, it creates two important scenarios:
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Increased Competition for Fewer Homes
When many buyers are searching for homes, the competition becomes fierce. Imagine this: if you and several friends all want the same toy, and there are only a few of them on the shelf, you might have to rush to grab one before someone else does. In real estate, this means that if lots of people are looking to buy, they might end up bidding against each other. This can lead to multiple offers on the same home, which can push the price higher. In simple terms, when more buyers are in the market, it can make it harder to find a home at a good price. -
Price Increases Due to Lack of Inventory
With more buyers than homes available, prices tend to rise. It’s basic economics: when demand goes up and supply stays the same (or even gets smaller), prices usually increase. Think of it like this: if there are only a few ice cream cones left on a hot day and everyone wants one, the person selling them might raise the price because they know people are willing to pay more. Similarly, in real estate, if there are not enough homes to meet the demand, sellers can ask for higher prices. This can make it much more expensive to buy a home if you wait too long.
Take Action Today!
So, instead of waiting for interest rates to drop, consider the benefits of buying a home now. While you may feel that waiting could save you money, the reality is that waiting might actually cost you more in the long run due to rising home prices and increased competition.
Want to do a bit of figuring out first? Check out my calculator to see what it will take to get into the home you want—at a monthly price you can afford. Understanding your financial situation can empower you to make informed decisions.
If you're unsure where to start or how much you might qualify for, I’m here to help! Feel free to reach out to me at rik@tmcweconnect.ca or call/text me at 587-404-6393. I’ll guide you through the process and ensure you and your real estate professional are informed every step of the way.
Don’t let uncertainty hold you back—let's explore your options....apply today!