When’s the Best Time to Buy a New Home? At the End of This Year!
The Canadian housing market can be a hard one to predict lately. At the end of last year, many home buyers were sitting on the sidelines waiting for prices to come down. In some parts of Canada that is happening, and so buyers might be thinking about jumping into the market during the busy spring season. Some, such as those in Toronto or Vancouver, might be thinking about sitting it out a while longer, waiting for prices to fall even further. Yes, it’s a hard one to gauge. So when is the best time of the year to buy?
If you’re looking for a new home, CMHC says that the beginning of this year might not be the best time, as construction is expected to be slower in the first half of this year. That will pick up in the last six months of the year, but by the beginning of 2014 the picture might be quite different once again. The Crown organization says that will be due to an improvement in the economy, and the probability that interest rates will rise.
“CMHC expects housing construction activity will trend lower in the first half of 2013, before gaining momentum by the end of the year as economic and employment growth remain supportive of the Canadian housing market,” said CMHC Deputy Chief Economist Mathieu Laberge recently said. “In 2014, improving economic conditions may be partially offset by a slight moderation in the number of first-time home buyers, and potential small and steady increases in mortgage interest rates.”
Housing affordability is getting better though, as stated a report from RBC last week showing that it with prices dropping on homes, as well as lower costs in costs such as utilities and property taxes, it’s becoming more affordable for people to buy a home. The resale market has also been seeing some of the most activity, something which the new home construction that CMHC pointed to, doesn’t affect.
The fact that new home construction is slowing though, may also contribute to the fact that The Globe last week stated that there may not be a huge spring surge in the real estate market that’s typically seen. If things do pick up at the end of the year though, it will be interesting to see what the fall and winter markets – two of the slowest seasons – have in store.