The state of the residential real estate market is challenging these days – and making it difficult for those grappling with some big decisions.
They are weighing buying now versus holding off in hopes prices will drop. Or, should they move to the suburbs where their purchasing power goes further in terms of square footage and land.
Coloring their decision-making process are a few macro issues. The first is interest rates which are starting to move up from all-time lows. That suggests buy now, before rates go higher.
Then there’s competition for properties which is driving prices higher. Slim inventory levels due to high demand have reduced choices while raising prices which may be a reason to hold off until inventory levels can catch up. But, lumber prices are going through the roof and that is adding more upward pressure.
A new survey on this topic conducted for ScotiaBank suggests age or location may be a factor in how these questions are answered. Younger people are more likely to pull the trigger now to capitalize on low interest rates. Conversely in Saskatchewan, 70% plan to renovate instead.