Long Term Is Best

Every Google alert I got today was about "spiraling" house prices or the Canadian real estate market hitting the brakes. After scanning quite a few they all boiled down to a 5% drop in housing prices in Alberta, leveling in Vancouver and Ottawa saying no to 40 year mortgages.

Vancouver was bubbly for a long time with the never ending condo market and the incredible lack of affordability, Ottawa and Ontario are suffering high dollar blues and Alberta is leveling out after an incredible increase that threatened to erode affordability.

If you own a home and aren't trying to sell then no problem, if you own investment property then keep it rented and make sure it's covering the bills. However, if you are trying to sell now then you have some pretty bad timing! Why not wait a year, try and make your property cash flow then put it on the market??

Balanced Market Let's First Time Buyers In

Last year when prices in Edmonton rose close to 50% first time buyers were afraid they would never be homeowners. The frenzy that resulted in "conditionless" contracts, bidding wars and listings on the market for mere days left a lot of people feeling out of control in their buying. The attitude was buy it now or never see that chance again.

However since the market has cooled a little buyers can take there time picking a choosing deals. They can have terms that protect them or help them buy more easily.

"With the best selection of homes listed for sale in years, entry-level buyers have the luxury of time on their side,...""No longer forced to act in haste, first-time purchasers can make offers conditional on financing and home inspections." RE/MAX

We are certainly able to pick and choose the properties we are buying now and with better terms and a lot of room for negotiation. It's a nice time to buy.