Bringing you important insight to our real estate market, driven by years of experience and proven success in any market.
This month we are going to explore a FAQ in our market...
"SHOULD I BUY or SHOULD I WAIT???"
The answer to the above question is “buy what you can afford”. If you are looking for a primary residence and feel that waiting for prices to come down is best, keep in mind that lower prices and climbing interest rates can work out to be the same cost. The Bank of Canada is reviewing and adjusting interest rates on Oct 26 and December 6. The top economists predict increases to reach over 4.0% in 2023. Do rising interest rates and decreasing home prices really equal out? Here is an example. If you purchased a home for $700,000 at the beginning of the year vs purchasing the same house in today’s market for $600.000 you will see the cost is virtually the same.
HOME PURCHASE
APRIL 2022
Loan Amount
Single-Family Home Penticton BC
$700,000.00
Interest Rate
P&I
3.5%
Amortization Period
25 years
Monthly Payments
$3,494.89
HOME PURCHASE SEPTEMBER 2022
Loan Amount
Single-Family Home Penticton BC
$600,000.00
Interest Rate
P&I
5%
Amortization Period
25 years
Monthly Payments
$3,489.63
Difference
($5.26)
Buy what you can afford and don't worry about timing the market because not even the most brilliant economists can predict the future.
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Green Real Estate Group assumesno responsibility or liability for any errorsor ommisions in the content of this site.
