If you’re tired of renting and have always wanted a home you could call your own, but thought the opportunity was just beyond your reach because of economic factors, here are some things to consider if you are thinking about taking the home ownership plunge.
In a recent report put out by the British Columbia Real Estate Association (BCREA) it was suggested that perhaps Home Buyers were in the driver’s seat.
Cameron Muir, BCREA Chief Economist said, “A relatively large number of homes for sale have created the most favourable supply conditions for home buyers in more than a year”.
The silver-lining in the lacklustre economic outlook is that the normalization of both short-term and long-term interest rates will be deferred. BC households with variable rate mortgages will therefore be facing lower payments than we would have originally predicted at the beginning of the year.
Moreover, new homebuyers or homeowners set to renew their mortgages will be offered a second chance at securing rates at levels last seen at the depths of the financial crisis.
The BCREA mortgage rate forecast is for a continuation of the current low-rate environment into early 2011, when prompted by a new round of tightening by the Bank of Canada and (hopefully) brighter economic prospects, interest rates will renew their ascendency to historical norms but at a measured pace.
The one-year fixed mortgage rate is forecast to finish 2010 at around 3.20 per cent and to reach 4.05 per cent by the end of 2011. The five-year fixed mortgage rate is forecast to end the year at 5.35 per cent and to reach 6.10 per cent by the end of 2011.
So with a good supply of homes to choose from and continued historically low interest rates this could be as good a time as any buy a home.
(This article was prepared on behalf of the REALTORS® of the Vancouver Island Real Estate Board for the information and benefit of consumers. Visit www.vireb.com for more information.)
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