A recent survey by BMO found that 71% of homebuyers think house prices are too high, especially in urban areas. The survey also found that there is a lot of pressure to buy now before interest rates start their upward climb and the HST is introduced into BC and Ontario. So, prices continue to rise even though they are already so high.
House prices have gone up by 89% since 2002.
House prices have gone up 18.2% in the past year alone.
What does this mean to you?
If you own a house already, you have built up a load of equity. You’re living on easy street. This is a good time to sell. Take the cash. Downsize.
If you’re thinking of buying, unless the interests rates, the HST and other economic factors cool the market down, bidding wars and rising prices will continue. It is a tough time to buy.
What would I do?
My advice would benà It is always too late to get into the market. Buy something now, something nice but small. Then at least you’re not renting. You’re in the market, rolling with the tide.