As you make your way back to work today...you've likely indulged in headlines all summer about the housing market. Rates are going up this week for sure has been the most popular arguement. Canada is growing and it needs to be slowed. Interestingly enough, the last bout of increased rates still had Canadians scrambling for treasuries/safety and yields moved downward causing mortgage rates to fall (fixed term).
Gone are the days of multiple offers read the headlines. Yet from where I sit, the lack of supply often resulted in homes in certain pockets selling above with a few offers on the table.
There is a housing bubble and prices will crash others argue. I've been hearing about this for the better part of the last few years. I haven't seen it. The economists are worried about the increasing debt loads of Canadians and how home owners are going to start saving more and hence the economy will falter and housing prices will fall. Though, they put into place some stricter guidelines already that apparently have had some effect on eroding the bubble.
Anyhow, nobody has a crystal ball. Certainly the U.S. didn't!!
I'm betting that we see an increase in listings this month and while traditionally the stock market doesn't fare well in September, home buyers make their way out of the wood work and purchases go up from an inactive summer.
In any event, rates remain low, product can only increase from where we've been over the last few months and people always need to have a roof over their heads. People like having equity and there's no faster way for most to make their asset column look stronger then purchasing a home.
As I've argued for years, the seller pays the commission and its embedded in price you pay as a buyer. A strong agent will not only make sure your offer is one sided to your advantage where possible but should be able in this market to negotiate the best price and terms on your behalf.
I'd be happy to speak to you should you have any questions at all and see my website http://www.TheSmithsBuyAHouse.com (great resource).
Happy September---
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