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6 Signs It’s Time to Buy a House

Tuesday, October 24th, 2023

Many people dream of having their own house at some point. Owning a home is an excellent way to build financial security and equity. And while renting gives you the freedom to move when you want, the urge to own often rises to the surface. But how do you know when you’re ready? Here are six signs that it’s time to buy a house.

 

Your Rent is Increasing… Again

Both buying and renting have their drawbacks, but one of the great grievances with renting in recent years is rising rental prices. These make it difficult to have enough for monthly costs and save for the future. Unlike paying rent, owning a house builds equity, and the monthly costs are cheaper in many areas, even with extra expenses like property taxes and maintenance factored in.

 

You Have Excellent Credit

Besides not having enough for a down payment, low credit scores are a common reason that renters can’t qualify for a mortgage. But if you have a healthy credit score – most lenders look for at least 650 – then it is likely that you will be approved. The better your credit score, the better rate you will get on your mortgage and the easier it will be to get approved since lenders will be less worried about you going into default on your loan.

 

Your Debt is Manageable

Another thing that mortgage lenders look for in the application process is the applicant’s debt-to-income ratio (DTI). This is calculated by adding up your monthly debts and dividing the sum by your gross monthly income. No lender expects you to be completely debt free, but the higher your DTI ratio, the more risk you pose to a lender and the less likely you are to get approved. Most prefer a ratio of no more than 43 percent.

 

You Have a Down Payment Saved

The single biggest factor in whether you are ready to buy a house is whether you have a down payment saved. In Canada, a down payment of 5 percent is required to buy a house. However, the larger your initial down payment, the more you will save over the lifetime of your mortgage loan. Putting down an extra five or ten thousand dollars could help you get a bigger house or cut down on your mortgage costs.

 

Remember that there are additional costs to buying a house than just the down payment, such as closing costs, maintenance, and emergency funds. You will want to have the down payment saved plus extra.

 

You Want to Settle Down for a While

If you know that you will be moving away in the next few years, buying a house may not make sense since you may not break even on the home sale and instead lose money. Similarly, buying a house is probably not a good idea if you are worried about losing your job since part of settling down is knowing that you have career stability. But if you want to remain in your location for the foreseeable future and have a stable income that can support a mortgage, then it might be time to buy a house in your area.

 

Your Lifestyle Can Support It

It is a lot harder to sell a house than it is to break a lease, so you want to make sure that you are in a good place in life to pay a mortgage long-term. This means not only job stability but relationship stability, especially if you are buying a house together with your partner.

 

Sometimes certain aspects of your lifestyle are not very conducive to renting, such as if you have a large dog or are a musician. In these cases, owning a house can be a more comfortable way of living, giving you control over how you live and more privacy to do things the way you want.

 

Once you know you are ready to move into a house, determine what you need and what is important to you, such as location, amenities, and the type of house. There are many options out there, and each has its benefits and things to consider. If you are ready to take the leap into owning your own house, a mortgage lender can help you get pre-approved so that you know what you can afford.

 

Our office is here to help, call us today 780-962-8580.

Edmonton Real Estate Market Breaking Records

Thursday, June 9th, 2022


Is Edmonton real estate the last affordable market in Canada?

Like much of Alberta, the Edmonton real estate market had been hit hard by COVID-19 and the crash in crude oil and natural gas prices in a slumping economy. While the broader Canadian housing market rebounded quickly after the initial first wave, Edmonton and the rest of the province were slow to respond.

Over the last year, with historically low interest rates and lower prices compared to the rest of the country, prospective homeowners dipped their toes in the Edmonton real estate market. Fast forward to the present, and the Edmonton housing market is booming without any sign of slowing down.

People began to see the interest rate dropping and their purchasing power increase,” Tom Shearer, the past chair of the Realtors Association of Edmonton, told Global News. “They saw some of those higher-end properties start to come down to a range where they felt comfortable moving into them.”

Although prices are skyrocketing in the major urban centre, conditions are still relatively affordable compared to other large areas in Canada, such as Toronto or Halifax.

But this level of affordability could be fading fast, with the western municipality experiencing a record-breaking real estate market to kick off 2022. Is this the new normal in Edmonton for the rest of the year?

Edmonton Real Estate Market Breaking Records in March

Is this a sneak peek into Edmonton’s spring and summer seasons? If winter, which is historically quiet in Edmonton, led to a spark in home sales and price growth, then the coming months should be impressive for the area.

According to the REALTORS Association of Edmonton, residential sales advanced at an annualized rate of 45.4 per cent in March. All property categories witnessed robust sales activity in March:

  • Single-Family +21.2%
  • Duplex / Row: +54.2%
  • Condominiums: +67.1%

In addition to swelling transactions, price growth was notable, especially for detached homes. The MLS® Home Price Index (HPI) composite benchmark price climbed 9.4 per cent year-over-year to $369,700. Here is how the different properties performed in March:

  • Single-Family: +9.9% to $503,711
  • Duplex / Row: +11.8% to $389,321
  • Condominiums: +6.7% to $245,070

“The Greater Edmonton and Area market continues to surprise us as we enter into what is normally the start of the busy season of real estate,” said REALTORS® Association of Edmonton Chair Paul Gravelle. “Although we are seeing slightly lower increases for average sale prices across all categories, there has been a huge increase in the number of listings hitting the market as well the number of sales in the month of March.”

Indeed, new residential listings increased 7.6 per cent year-over-year and a stunning 47.7 per cent month-over-month. Meanwhile, days on market declined in March, with single-family homes typically listed for only 27 days, down from 42 days the month prior.

On a positive note, new housing construction activity has remained strong so far this year. According to Canada Mortgage and Housing Corporation (CMHC), housing starts totalled 2,641 in the first three months of 2022, up slightly from 2,511 unit starts in the first quarter of 2021.

Overall, the benchmark price trend is going up for Edmonton, which has been the case since the end of last year. But can this notable growth keep going for the rest of 2022? This is the question for Edmonton and many other housing markets that have experienced exceptional growth and activity.

According to the RE/MAX 2022 Canadian Housing Market Outlook, the Edmonton real estate market is expected to see the average sale price advance seven per cent by the end of 2022, while the number of sales is estimated to increase five per cent.

Other Noticeable Trends in Edmonton

Throughout much of the coronavirus pandemic, many homebuyers from across the country purchased houses in Atlantic Canada without even seeing them in person. The same type of development is unfolding in Edmonton as out-of-province buyers and investors scoop up tightening supplies, which is in turn driving up the price.

Public policy could also play a factor in the Edmonton real estate market. The city is reportedly homing in on property taxes and basing them on density with potential cuts for rental property owners and hikes for single-family homes. Many property developers and officials contend that the city’s present tax structure limits housing growth.

As more people continue working from home, space will still be a high priority for prospective homebuyers. A recent survey from the Realtors Association of Edmonton found that 61 per cent of homebuyers said a home office is an essential feature when choosing a residential property.

Due to heightened demand, Edmonton is seeing a myriad of factors come to the surface in the housing sector: buyers are bidding over the asking price, and offers with no conditions are winning. This is further impacting housing inventory, and Edmonton’s pendulum is swinging in favour of sellers.

Why pay commission to a realtor?

Saturday, May 22nd, 2021

RE/MAX Spruce Grove – Community Hub

Saturday, December 31st, 2016

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Our Blog Vision

RE/MAX Spruce Grove wants to be a community hub – a place where people come not only for their real estate needs and the expertise of the best realtors in the business- but also a place where you would come for community information outside of the real estate spectrum. We want to do the research for you on the happenings in the community and give you all the information you need about what’s going on and other important information in the community. The ultimate goal being to bring us together and build and strengthen our community family. We will be posting on here at least twice a week, and almost every post will also be put up on the RE/MAX Spruce Grove office Facebook page. You don’t want to miss anything, so please subscribe to the blog with the Subscribe button on the right hand side of this page, or like the RE/MAX Spruce Grove Facebook page here.

Thank you for your support!!!

Wednesday, June 29th, 2016

A HUGE THANK YOU to everyone who supported our annual yard sale on Saturday and helped us to raise almost $2,000 for the Stollery Children’s Hospital. We really appreciate living in such a great community!thank you

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the REALTORS® Association of Edmonton. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.
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