When we look at the big picture, and everything that’s happening in the world, the economy, the financial markets, the real estate market … everything happens in seasons. What goes up must come down. The good news is that no winter lasts forever and is always followed by spring.
Having said that, it’s safe to say - change isn’t just coming - it’s here. To get through it and make the most of it, I believe it’s crucial that we don’t just freeze and feel paralyzed about taking action because we are afraid to make a mistake. Life goes on. We have to adapt as quickly as possible, and in order to do that, we must look at the bigger picture.
If we knew for sure that interest rates were going to come down sooner than later, it would make sense to wait it out.
If we knew for sure that property values would be dropping more given the increasing supply, it might make sense to wait it out.
But what if interest rates don’t go down? What if they go up even more? After all, what we are calling a ‘high’ rate right now we used to think of as completely ‘normal’ not too long ago.
And ... I can tell you from experience that we would have loved to have today’s rates in the 80s when it was considered a selling feature to be able to assume a seller’s remaining mortgage on a property at 12%, so we didn’t have to take on the entire amount at 18-19%!
Another thing to consider is that the current rates are still way below the inflation right now, and … if you are renting … your interest rate is 100%.
If you are thinking of buying in the near future, I think it is very important to get the right kind of mortgage and be very intentional about the type of property and the location you’d be buying in to minimize risk as much as possible. Having said that, you cannot eliminate it fully, of course, and as your trusted advisor and REALTOR®, it is my fiduciary duty to give you as much information as possible so you can make a good decision.