Understanding the Market
It is said that an aware customer
is a happy customer, and at no time is this truer than when it
comes to purchasing a home. Whether you are
a first, second or third time home buyer, understanding
factors that influence the market will
greatly improve your chances of getting exactly what you want.
When deciding what, where and when to buy, it will be of use to
examine fluctuating market trends, such as pricing in reference
development projects, property value
and the best time to buy; by knowing what to look for you will
have more control over your investment.
When shopping for a home you must
keep two key things in mind; firstly, affordability, and secondly,
value increase. Ensuring you can afford the home you would like
to purchase will you save time, money and hassle. Fitting you
new home into your budget
is a necessary and rewarding task to achieve prior to looking
shopping around. As for value increase; it is absolutely imperative
that you take into consideration all of the factors that will
have an impact on the price of your home; not only at the time
of purchase, but also at time of resale
(if you so choose).
The closer you are to a city and
all its conveniences, the more costly your purchase will be. However,
if you are willing to commute, you can more than likely get the
same urban style home in suburbia, for a third the cost.
Over 50% of all western residents live in suburban locations.
This route of purchase may also be beneficial if you
ever decide to sell your home, that is, as urban areas move farther
and farther away from their central point, houses within the new
developing areas increase in value.
In relation to location, you may
also want to examine the future construction of neighbourhoods;
home-building companies will often build entire neighbourhoods
in areas just outside the city limits, in turn, considerably increasing
the value of pre-existing homes within the vicinity. Also, as
new development projects are implemented, property, not just home
value, will increase. With that being said, it may be more economically
realistic to purchase a home that is not situated close to a housing
development project. Remember, with increased property value comes
increased property taxes.
Another factor that influences home
buying trends is the notion of supply and demand. In every real
estate market there are always more houses
for sale than there are buyers. As a buyer, you can use this to
your advantage; not only are your options far greater than you
may have initially thought, but your price negotiation widow is
also a lot larger, and your time to choose, a lot longer. Do not
feel pressured to buy a home, the market is too vast to rush into
an unprepared purchase. Shop around, and be careful not to make
and impulse buy.
It may be helpful to know that
in cold climates, home value automatically increases in the spring
and summer months. The reasoning for this is that, purchasers
tend to want to buy houses in warm months when, not only can they
see the full profile of the house, i.e. the roof, front lawn,
driveway, etc., but the process of physically going to view the
home is less demanding. Because more homes will be shown in the
spring and summer months, there will be more people competing
for the same home, in turn, driving the price of the home up;
usually no more than 3% of the original cost.
Prior to purchasing a home, you
will definitely want to analyze the current mortgage
rates, as well as purchasing and selling trends in your area.
Almost every state and province have their own Market
Analysis Centre that can prove to be of much use when
trying to determine whether it's a buyer's, seller's or balanced
market. These centres publish market reports on a regular basis
and are your best source for following market trends.
Perhaps the largest influencing
factor on the real estate market is
With a plethora of possibilities
it may be hard to determine how much you need and how long you
need it for; again, shopping around for the best possible price
will ensure that you are completely satisfied with your choice.
For information relating the mortgage rates, please see the Home