If
you have been struggling to grab that one dream home in this low inventory
housing market, you have come to the right place. Here, I have thoughtfully
outlined five tips to buy a home while the inventory is low.
For
the past few months, the Canadian housing market is staying relatively tight
for buyers; it has been a seller's market. And everyone knows that in a
seller's market, prices are skyrocketing while listings remain low.
Before
I share the tips to buy a home in a seller's market, let me first define
different types of housing markets.
Seller's Market: In a seller's market, there are
more home buyers than home sellers. The listing period in a seller's market is
usually low and houses are sold quickly, over the seller's asking price. Here,
the market is in the seller's favour.
Buyer's Market: In a buyer's market, there are
more home sellers in the market, than home buyers. Here, the listing period is
often more compared to the seller's market. And since buyers have more options
to buy from, the prices are usually market-competitive, giving buyers an edge
to negotiate more than a seller's expectations.
Balanced Market: In a balanced market, as the
name sounds, the demand and supply are almost equivalent. Homes are in
abundance, and so are the homebuyers. It is the market where everyone goes home
happy. And the listing period is reasonable and so is the home price.
Since
you already know that it is a seller's market, you need to stay sharp. Keep a
close eye on housing listings.
For
this, you could subscribe to the email listing so that you're prompted whenever
there is a move in listings. If a subscription is not available, you could keep
visiting your local real agent's website, and find if there is a home available for you.
Additionally,
you could follow your favourite real estate professional's Facebook page. They
might have something valuable for you.
This
is a step prior to applying for a mortgage. List down what you need and what
you could sacrifice.
In
today's unpredictable situation, it's imperative that you run a tight budget if
you want to acquire a home.
Make
sure you have a stable income source, could differentiate between your needs
and wants and set aside a hefty sum as your savings.
This
would help you not only manage your monthly mortgage payments but would also
help you save for the down payment.
Since
you're already vigilant and updated with listings when you receive an update
from your local real estate professional and you get a house of your choice,
don't delay; act fast.
As
soon as you find your desired house, reach out to the real estate professional
and make an offer.
Since
this is a seller's market, prices are deemed to be higher than expectations. If
you really want to acquire a house, you need to make an undeniable offer so
that the seller looks no further and shakes hands only with you.
Even
if it feels that you have paid more than the current market value, it wouldn't
be considered a loss. Real estate is always in an upward direction. However,
their growth pace may slow down with time.
Read
this post stating that home prices in Canada are on the rise but soon will stabilize.
It
is never a good idea to buy a home with no help at all. Buying a home is a
lengthy process, additionally, you never know if this is a good option for you
or not unless you are an expert in this field.
For
instance, other than the documentation required in the process, you also need
to make sure that the house you're buying has no hidden problems. For this, you
acquire the services of a professional licensed home inspector. The inspector
would investigate if the house requires any renovations or fixing or is it good
to go.
Whereas
for a professional real estate agent, it's a matter of routine work. They are
experts and have in-depth knowledge of buying and selling a home. They would
make the entire process extremely convenient and would help in buying the best
home you deserve.
Some
experts are of the view that later this year, the housing market would soon
start stabilizing; home prices would witness a standard growth rate. But the
houses would still be more expensive than today.
So,
if you really want to buy a new home, it is about time and make your move.
Check out our bungalow listings. We always try to keep them updated and help in buying the best
home you truly want.