Real Estate : The Bigger Picture

There is never a better time to buy or sell than when YOU are ready and this is simply because parameters change constantly over time. That being said, having the right strategy is what really matters and it has to take in account your immediate AND future needs.

This week's additional rate increase announcement by the BoC highlights even more this crucial fact that planning and getting prepared are your best tools for success. In September 2022, the average home in Barrie (all types amalgamated) sold for $735,064. The same "home" sold for $965,191 in February 2022. Buying this house now requires a monthly payment of about $4650 (including mortgage insurance, 6% interest rate, 5% downpayment, 25 years amortization) while it would have required approximately $4050 with the extremely low interest rate of 2% at the time. That purchase in February was also done knowing that prices were abnormally high and were most likely to go down at some point and would require a more extensive period of time before seeing appreciation. The BIG difference today; it requires a lesser downpayment ($36,753 v. $48,260).

Buyers considering today's conditions with current rates but also considering that experts from various fields are forecasting that prices will trend upward again in the near future. We started to see this happening as September was up 3.6% versus August in Barrie, first increase since February. We are down compared to September 2021 (-5.4%) but you have to remember that September 2021 was +37.5% from September 2020.

It is indeed a challenging situation but buying is possible with the right approach. Let's take a look at your options! Brainstorming is free :)

Pascal Chouinard | Broker | eXp Realty Brokerage | mobile: 705.817.6998