Industry All-Star - Tami Kenwell, President, Madhouse Advertising
December 26, 2024
Uncertainty over housing supply, interest rates, inflation, politics and the economy in general... There’s been no shortage of reasons for pause for some would-be homebuyers: But the pendulum looks to be swinging back the other way.
To help you understand all the factors to make a better, more informed homebuying decision, our 2024 Builders' Annual sat down with some of the industry’s top marketing and sales experts for expert advice.
Current market conditions are opening the door for more potential homeowners. To buy or not to buy? Trying to time the market is one of the biggest questions potential homeowners face. Right now, a unique combination of factors is creating a prime opportunity for buyers to enter the housing market through early 2025.
The mortgage cap rate has increased to $1.5 million. Buyers can now purchase more expensive homes with a lower down payment. This is particularly beneficial for those people looking to buy in more expensive areas, such as Toronto.
Average pricing for all product types has decreased year over year. Homes are more affordable thanks to increased housing supply, economic conditions and government policies aimed at improving housing accessibility. The downside is that these lower prices can attract more buyers, increase competition and drive prices up again, long term.
Further drops in mortgage interest rates are anticipated. Buyers interested in preconstruction sales can lock in the best price now. Then, they can continue monitoring interest rates and secure a lower rate before closing, making that new home even more affordable.
Explore new builds. The increasing supply of newly built homes can lead to better deals and incentives, over a resale. For instance, developers may allow you to extend your deposits across one or two years as an incentive to buy. This can give you more time to save or to keep your money working for you longer.
Stay updated on mortgages. The right mortgage can boost your buying power, making a home more affordable. Could an accelerated payment plan lower your interest costs while respecting your monthly budget? Or would you benefit from a longer-term mortgage with lower payments each month? Your lender can advise you on what makes sense for you.
Know your regional variations: Housing market conditions can vary greatly by region. Research local market trends to make informed decisions. Is there an up-and-coming neighbourhood that’s less expensive to buy in? Could your first home be a stepping stone to your second in your dream neighbourhood?
Negotiate your terms. Builders with unsold homes may be more willing to negotiate better terms to close the sale.
Follow these tips, so you’ll be well-prepared when the right home catches your eye. Happy house hunting.