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  • Steve Garganis

There’s Never a Good Time To Time the Market

Rates are up, inventory is low, and sales volume is flat. If you’re looking to buy a new home, what are you supposed to do? A lot of people will tell you to wait. After all, rates are dropping soon! Why not just be patient until you can lock into lower monthly mortgage payments? 

What these people don’t realize is that waiting can be a dangerous game. I’ve been in real estate for more than 3 decades, and while things change all the time, one thing has remained consistently true: it’s never a good idea to time the market.

Why Waiting Is A Bad Idea

There are a few reasons why your best bet is to act now. For starters, plummeting rates will likely result in price spikes. Then the inevitable flurry of activity will begin. Suddenly, that home you’ve had your eye on has 18 offers, and yours isn’t particularly competitive. You don’t want to be in a situation where you lose out on the perfect property, or lose out on multiple offers because you waited for “the market to pick up.”

If you’re a first time buyer currently renting, it’s best to get out of the rental market ASAP. Landlords will start looking to cash in on a hotter market. When they do, and your landlord sells, you might find yourself out of a home. Trust me – you don’t want to be looking for a new rental property right now if you don’t have to. Why pay sky high rents when you can be putting equity into an appreciating asset?

What To Do Instead

It might seem like a scary time to buy. Luckily, you don’t have to go at it alone. There are some qualified, knowledgeable, and professional mortgage professionals out there who can help you find the perfect mortgage product. Of course, it’s not just about rates. Trust someone who can steer you in the right direction so you can come out on top in the long term.

As long as you trust the professionals, don’t try to time the market, and hold onto the property for at least 7 years, then you’ll almost certainly be in good shape. 

Why 7 Years?

Seven years is the perfect amount of time to amortize expenses associated with buying a home. Think legal fees, land transfer tax, moving costs, etc. After 7 years, not only will you have absorbed those fees, but your property will likely have seen a healthy increase in value.

Of course, the 7-year rule isn’t a hard and fast rule. If your property is in an area that has appreciated significantly and you really really want to move, selling might be a great call for you. But generally the idea rings true: timing the market won’t help you. It’s about what you do when you’re in the market that makes all the difference. 

Steve Garganis

Canada Mortgage News

January 15, 2024


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