It was a crazy time for the Canadian housing market in 2020. Even with a pandemic raging across all the provinces, housing prices actually went up. With interest rates at some of their lowest numbers in years, those who had the right combination of savings and low debt were able to make a purchase.
2021 Shifts
The outlook for 2021 seems just as crazy. While prices will remain high at the start, experts believe they will go down by as much as seven percent as the year progresses. This is primarily due to a production decrease in the Alberta oil fields. As a result, there’s now a glut of homes available around Calgary and Edmonton.
The number of available homes may increase as people make decisions on where to live. Those who panicked at the large number of urban COVID-19 cases have decided to move to the suburbs. Conversely, those currently living in those bedroom communities want to leave for rural areas.
Needless to say, there’s a lot to know about getting a new home in 2021. However, if you follow the next three steps you’ll be ahead of the game.
1. Be Patient
Don’t start looking for new houses for sale in Edmonton or another Canadian city once the clock strikes midnight on the first of January. They won’t disappear on you. In fact, as mentioned above, there’s an over-abundance of new homes in certain cities.
This means home prices are bound to go down. Not only due to energy issues. They’ll also be reduced because people are leaving areas around the cities. Hence, home builders will start to offer special deals as soon as the spring.
Be patient and watch the market in the area where you want to live. You don’t want to jump the moment prices go down. It might be a blip. You want to wait for a trend to be established before you contact a real estate agent.
2. Look For Quick Sales
It takes a good amount of time for new homes to be completed. You have to select the floor plan and design elements. Then, they need to construct the home. It might be a year to 18 months before you move in.
Unless you look into a rapid possession home. These new properties, sold by companies like Sterling Homes, are in some phase of construction. The floor plans and designs have already been picked out. However, there are either too many homes available or the original buyers backed out.
There are two benefits to purchase a rapid possession home. First, they’re ready between 30 and 90 days — much less than new construction. Second, because they need to be gotten rid of, they aren’t as expensive.
3. Be Wary Of Your Finances
Before any type of purchase takes place you need to be aware of your finances. You need to determine how much you can save for a home, how much you can put down, and what your debt-to-income ratio looks like. These all factor into how much home you can afford.
The average price for a new home in Canada is around $380,000. Even if costs go down as predicted, the property you want will still be about $350,000. This is going to be hard to swallow if you don’t make enough to pay your mortgage, let alone have too much debt.
Thus, in the time you wait for that deal, fix your finances. Pay off as much debt as you possibly can to even things out. Reduce the amount you pay for wants and focus only on needs. Check your credit report for any unusual activity. Dispute what you need to close those issues.
You can be the owner of a new home in 2021, and you don’t have to win a contest to do so. Instead, watch what happens in the real estate market. If you stabilize your finances, then you’ll be ready to pounce on one property that fits your desires.
Additionally, look at rapid possession homes if you aren’t finicky about the interior or exterior design of the home. Remember, you can always make the changes you need once you own the property. In the end, it’s worth the lower investment.
