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Published: January 2008
Feeling the pressure of upgrading from your present
home or cashing in and downsizing? You are not alone. Home prices have
been spiralling ever upward indicating a demand that is outstripping the
available supply. Have you felt the fear of waiting too long? You could
find yourself priced out of the neighbourhoods you like best.
Lenders are bending over backwards to give people loans
and mortgages, allowing people to take on more debt, with worse credit,
than ever before. Looking south of the border, we now see what can happen
when lenders get too aggressive. Lenders here in Canada haven’t been as
aggressive as our neighbours to the south.
Is this a real estate bubble? Will it burst? Will it
level off? It’s hard to know in advance. If you are contemplating a move
any time soon, try to be relatively sure that the next purchase will
satisfy your needs for the next three to five years just in case the
market turns.
Also of note, since March 2007 homeowners have had the
option of changing from a 25-year amortization to a maximum of a 40-year
amortization thereby decreasing their monthly payments substantially. Is
this the key safety switch to help us ride out an incoming storm? You, the
masses will ultimately decide what is to come.
If I can be of any help to you, your friends, relatives
or associates, please do not hesitate to
contact me. Your referrals are greatly appreciated. |
