Feeling Whipsawed by Housing Prices and the Stock Market?
For many Buyers that failed to execute on their home purchasing plans during the easing of prices that took place during the recent market downturn, the emotional strain and financial opportunity lost is not dissimilar to those investors that missed the S&P/TSX Composite rally over the past 52 weeks. As has been pointed out on many occasions by prudent money managers and successful opportunistic investors, the best time to buy stocks is when every else is selling due to some general panic or irrational market behaviours. For those that timed it perfectly and bought the S&P/TSX Comp Index at the past 52 week low of 7,480 yesterday’s market close of 11,343 would represent a 52% gain! Drawing a comparison to the housing market, those smart buyers that went shopping and took advantage of the surplus of housing supply in the marketplace, obtained mortgage financing at very low rates with a locked in term for say five years and secured their dream homes, are looking very smart indeed today! We are now in a strong sellers market with limited inventory, rising prices and with the forecast for rising interest rates later this year. Housing affordability is surely an issue for many but sitting on the sidelines may prove to be even a costlier decision within six months or especially a few years down the road! My advice to Buyers remains unchanged; do your due diligence thoroughly, calculate your affordability levels carefully, choose your new home with care and most importantly, work with a competent REALTOR!
Happy hunting and call me when you need me!
Michael Blackler B.Comm., M.B.A.
Real Estate Broker
Royal LePage Real Estate Services Ltd.
326 Lakeshore Rd E.
Oakville ON
905-845-4267
michaelblackler@royallepage.ca
www.michaelblackler.ca