Opportunities for First-Time Homeowners in a Buyer’s Market

Real estate gurus and finance experts consider the depressed condition of the real estate market as perfect time for home buyers to cash in on probably some of the best buys ever. Perhaps, if we are looking for some silver linings amid all the woes and troubles we are going through at present then we can probably look at how things are going in as far as home prices are concerned.



In a recent report made by Statistics Canada, prices of new home units continued their downtrend, posting a 0.8 percent contraction for the previous month compared to the same period of the previous year. The unabated and frenzied activity in the real estate industry has led to the bubble burst and record low prices of real estate properties particularly the single family homes. Amazingly, we can clearly define the current levels by stating that the present market conditions allow home buyers to purchase their new homes with a price they would have paid in repairing their kitchen during the time when the real estate was its peak!



Price trends all indicate that these are the best times for home buyers. In related industry report, experts observed that first-time home buyers can now purchase their real estate properties for as low as $75,000. These record low prices of entry-level home units have been the highlight in 32 major real estate market fronts across Canada. There is now an emerging trend in the market pointing towards more families moving out of their usual comfort zones and leaving home rentals and going out for their home buying activities. Most real estate and market analysts consider first-time home buyers as the major driving force of the real estate market although there are still some lingering fear and hesitation of some sectors to cash in on these positive trends in the market.



Mortgage rates are also at its lowest in recent years. Entry-level variable mortgage programs can be had at a miniscule interest rate of 3.3 percent while other mortgage options carry a cost of 5.5% or lower. These current mortgage rates are about 15 points below their highest levels in the past 30 years.



The glut in the real estate market coupled with the increased time that a real estate property stays on the selling block and the low mortgage rates are enough reasons for Canadians to go on buying mode.



Despite these prevailing positive indicators in the real estate market, buyers will still have to contend with stricter requirements of most mortgage lenders. These requisites of lending companies are significant to potential mortgage applicants especially those who fall under the "grey-area" category. Nonetheless, you become a hot target of major mortgage lending companies once you pass their initial scrutiny. Prospective mortgage applicants must have a stable source of income, outstanding credit record or sufficient collateral material to support the mortgage application.



If you are seriously considering going on a buying mode, the following must be included in your checklist of essentials:



• Career/job security

• Current liquidity to cover down payment

• Cash allocation for closing and other incidental costs

• Management of sufficient liquidity within the mortgage term



Once you are able to hurdle these initial requirements, you are already good to go – and become one of those buyers who can end up with probably one of the best deals in the real estate market in most recent years.



Article by canadianhomefind.com Canada’s most effective For Sale By Owner service. Click for more information on: For Sale By Owner how-to Most Effective FSBO Programs Browse FSBO Listings