The spring housing market is just around the corner! Whether you’re looking to sell, buy, or want to ensure your mortgage is in order, knowing what to expect can help.
Here is the low down on what we are anticipating for various factors affecting the housing market this season:
- Interest Rates: While the Bank of Canada has held the overnight rate steady at 5% for the past five meetings, it is expected that they will make the first interest rate cut in June or July this year, followed by additional reductions to a more manageable level as the year continues. Experts predict that The Bank of Canada rate could drop to 3.75% by the end of 2024.
- Housing Prices: With interest rates expected to start coming down mid-year, that means more affordability and buyers in the market. As a result, home prices are expected to increase this year.
- Market Inventory: According to the Canadian Real Estate Association, the number of new properties listed increased by 1.5% month-over-month in January, and it is expected to rise as interest rates drop.
Would you be interested in buying? For those of you who may be looking to purchase a home this Spring, here are some things that can help you be prepared:
- Get your finances ready by paying off as much debt as possible to improve your debt-to-income ratio and ensure you qualify for the best rate possible.
- Obtain a mortgage pre-approval before starting your search. This helps you understand your budget and makes your offer more appealing to sellers.
- Clearly define your priorities and preferences for a home. This will help streamline your search and make decisions more efficiently, especially as the market becomes more competitive.
Are you a first-time homeowner? If you have yet to become a homeowner, take advantage of first-time home buyer assistance. You can learn more about it on the Government of Canada website here.
Would you be interested in selling? If you want to sell your home this Spring, you will want to be ready to take advantage of the market! Some things you can do include:
- The first step is to find a reliable real estate agent to help you price and list your home for sale. Not sure who to call? I can provide some references!
- Allow open houses during evenings and weekends to maximize potential buyer foot traffic.
- I have even more tips on decluttering and getting your home ready to sell below!
Want to renew or refinance? If you’re not looking to sell or buy this Spring, you may still seek mortgage advice or assistance with your home and finances. Now is a great time to ensure your mortgage works for YOU! With so many renewals coming up this year, keep in mind there are several benefits to taking time to review your renewal before you sign:
- Get a Better Rate: With interest rates expected to come down, taking time to reach out to me and shopping the market could help save you money!
- Consolidate Debt: Renewal is a great time to look at your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have.
- Start on that Reno: Do you have projects around the house you’ve been dying to start? Renewal time is an excellent opportunity to utilize some of your home equity to help with home renovations so you can finally have that dream kitchen and updated bathroom or even use it to purchase a vacation property!
- Change Your Mortgage Product: Are you unhappy with your existing mortgage product? Perhaps you’re finding that your variable-rate or adjustable-rate mortgages fluctuate too much, and you want to lock in! Alternatively, you may want to switch to a variable as interest rates level out. You can also utilize your renewal time to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!
No matter your plans for this month or the coming season, don’t hesitate to contact me for expert mortgage advice!