by Anthony D’anello | Dec 06, 2021
When it comes to real estate, the market changes relatively often. Not only do interest rates fluctuate, but also inventory. That means it’s either a buyer’s or seller’s market. The current status either benefits homebuyers or people interested in listing their houses for sale.
What’s the Difference in Markets?
Below is how you can differentiate a market that favors buyers as opposed to one that benefits sellers.
In a buyer’s market, you have an abundance of options. Along with that, most sellers list at or below current property value. So, you can find an amazing home at an excellent price. In comparison, you don’t have many options in a seller’s market, and you’ll pay premium money to become a homeowner.
The Benefits of Renting
When the market favors buyers, a lot of current renters or people thinking about renting decide to purchase a house instead. However, when the market favors sellers, those same individuals need to strategize carefully. Otherwise, they’ll likely settle on a house that doesn’t meet their criteria and possibly pay over market value.
The market in Montreal, as well as other regions in Canada, favors sellers. In other words, it’s currently a seller’s market. While you might have your heart set on buying the home of your dreams, you probably want to wait.
Keep in mind that during a seller’s market, rental properties are also somewhat difficult to find. For that reason, you may need to move into an apartment, duplex, or house that isn’t what you’d typically choose. Just remind yourself that the situation is temporary.
Try not to feel discouraged. At some point, the market will start to favor buyers, and that’s when it makes more sense to purchase a home. In the meantime, consider renting as a small sacrifice while moving toward the bigger goal of becoming a homeowner.
Even with the current situation, most landlords offer flexible terms. That allows you to rent a place on a month-to-month basis or opt for a lease.
Now, if the only option you have is a one-year rental contract, use the time to your advantage. You can save more money toward a down payment on a home. Also, if you have any blemishes on your credit report, take the necessary action to increase your FICO score.
A higher down payment and improved credit will make it easier to qualify to buy a house, and lenders will offer a lower interest rate.
Work With an Expert When You’re Ready to Buy a House
When the market becomes favorable to purchase a home, you want to work with someone who has years of experience and vast knowledge of real estate. Anthony D’Anello will help you through the entire buying process. While waiting for the market to turn, he can also help you find a comfortable rental property. Call today for more information.