The home search process can be overwhelming and not all search sites are made equally.
I will keep you up to date and organized, sharing real-time data and easy communication with my Custom Home Search Concierge.
Yes. But I’ve been telling potential buyers that since last October. The difference? Back in October 2023 or January 2024, buyers were seeing high inventory, low competition and great value BUT they were locking in at fixed rates that massively affected their buying power. Today, the same conditions exist for buyers with one massive caveat, rates are down and they are forecasted to continue to drop.
In Mount Pleasant, inventory is still high as total inventory in September 2024 was 168 which is 17% above the 10 year average. At the same time, it's been made clear by Bank of Canada, as well as market analysts; we are passed the peak of this rate cycle. The market is pricing in two more cuts for 2024 in October and December and a total of .75% between those two decisions.
I can't say where the tipping point will be but any cut bigger than .25% will get more attention and if the markets are right; two cuts totalling .75% over two months will be hard to ignore.
What does 0.75% look like though?
For people going variable that are capped due to income qualifying; 0.75% in cuts will allow them to stress test for 7.6% higher mortgage than they could today (ie. $645,600 instead of $600,000).
Or let's say a buyer has a large down payment ($200k) from family like 1 in 3 first time buyers. There income may be able to qualify them for more but they are monthly budget sensitive;
today a mortgage payment of $3500/month could get them $592,139 in mortgage. So a max purchase of $792,139. *based on prime -0.51
After the expected cuts of 0.75%, that same payment could allow them a mortgage of $642,099. Thats a difference of $49,960 and brings them to a max purchase of $842,099 with the exact same monthly mortgage expense.
Now, everyone wants their mortgage payments to be smaller but do you want to be competing in multiple offers with buyers that have just added nearly $50,000 in buying power?
So what do you do with this information? We are currently in a sweet spot in the market for buyers. Supply is up, demand is low and if you find the right seller, there are deals to be secured. Either way, a buyer is currently able to negotiate other terms to their liking (think dates, subjects, requests) and avoid multiple offers in most cases. Most importantly, let's say you had an accepted offer today with completion in 6 weeks (or longer), you'll have had 6 weeks for your mortgage professional to keep pushing and capture the best rate.
If it is your goal is to BUY in 2024/5; connect with a mortgage broker and a Realtor now. Both professionals work with buyers at all stages to help them prepare and recognize their personal “right time to buy”. If you can qualify now but you’re sitting on the sidelines; don’t forget that as rates drop and your buying power increases, so does everyone else’s.
Get pre-approved and ask your mortgage broker for a range of hypothetical rate scenarios. Then sit down with your Realtor and recent sales to compare what it looks like to purchase at today’s rates at prices vs. tomorrow’s projected rates and prices.
Click here to BOOK a no pressure Buyer's Planning Session with Kade
The home search process can be overwhelming and not all search sites are made equally.
I will keep you up to date and organized, sharing real-time data and easy communication with my Custom Home Search Concierge.