The ever-changing real estate market has had its highs and lows for the last few years, but there's an interesting trend taking place at the moment.
Royal LePage real estate agent Ashley Reid says interest rates are lowering slightly, but they're still a little higher than they have been in the last few years. She notes the current situation allows you to take advantage of the market to your benefit.
"That being said, our house pricing has come down a little bit," says Reid. "So, we are seeing a little bit of a break for the buyer there. With the interest rate increase, they are allowing some people to exit their mortgage with a minimal penalty."
She notes it's in the buyer's interest to buy a house at a lower rate at the moment, with just a small increase in interest, and explains why.
"When the rates do go up, you'll have a smaller penalty to pay, and jump in on that lower interest rate," continues Reid. "Then you've purchased the price of your house at a lower price and you'll be getting the lower rate, eventually. In the end, you do get the better savings."
Reid explains why purchase money is going more toward the bank in this situation than the seller, and how you can get ahead.
"With the last few years, our interest rates were quite low and our house pricing was quite high," says Reid. "You were just giving your money to the seller rather than the bank. Right now, it's shifted with that interest rate. You're now just giving your money to the bank, as our house pricing is a little bit lower. So, you do end up just giving your money to one or the other. If it's to the bank, you can get the new rate."
She adds that all means that you will have that lower interest rate and smaller penalty to cancel your higher interest rate mortgage when you get in on that newer rate when it comes.
"Then you've bought your house at a lesser price, and have the low rate, as well".
Rhonda Lodwick of Century 21 Foxx Realty says the warm weather is moving in and is bringing out the homebuyers.
"We definitely could use more listings in certain price ranges," says Lodwick. "The rates seem to be coming down slowly but surely. But I always think now is a good time to buy. If you wait for the rates to get lower, obviously, there'd be more buyers and you'd be in more competition, and possibly pay more. So, why not start looking now? Overall, I think everything's moving along nicely, but the sunshine will definitely help."
She notes the bankers and financial institutions are feeling the rates will go down a little further, but not a drastic amount.
"They're not even forecasting 4 per cent yet," continues Lodwick. "I think at 4.5 and 5 per cent, it's not a bad time to be buying a house. Why not? Again, get out there. There are some really great houses out there at some really fair prices. If you're looking now, there's less buyers out there than there will be in a few more weeks, if rates change again."
Now that spring is here, she notes more houses will be listed while sellers know that more buyers will be out looking.
"If you're thinking of listing your home, I would definitely tell people to reach out to their agent, have that discussion, and possibly make sure you get the timing right so you can take advantage of those buyers out there searching."