It is necessary to have finance in order to buy his first house

Il faut avoir des finances en béton pour acheter sa première maison

Forecasting real estate give cold in the back, it must be said that we are not accustomed to, we do announce cuts on the resale market.

The canada mortgage and housing corporation (CMHC) provides a decrease of 6 % to 11 % of the price of real estate here a year in Quebec.

In such a market, is it better to wait until the purchase of his first home ?

The question comes to the mind of many aspiring owners. If the prognosis of the CMHC is realized, this will be more than the value of the fund, accumulated at the cost of years of effort, that will fly in a few months.

Flats on the pessimism

The scenarios presented by the CMHC are not unanimously welcomed, however.

Hélène Bégin, senior economist at Desjardins group, is expecting a price drop by the end of 2020, but less dramatic than those put forward by the CMHC.

It expects a decline of 5 % over the next two quarters. As the market began to 2020 in-force, the year will conclude in the end with a 2.5% increase.

In places where supply was tight, particularly in some central neighbourhoods of Montreal, the price could be maintained, believes the economist.

“However, there is no doubt that the pandemic has put an end to an overheat “, she says.

Long-term purchase

A price reduction of 5 %, it’s still annoying. This is the equivalent of even the minimum downpayment required to purchase a home.

The prospect of seeing his purchase of real estate depreciate in the short term should not be a brake. On the contrary, it is the time to go there and negotiate. Buyers suddenly find themselves in a power struggle that it is favorable.

From a financial point of view, it is always better to buy in a low, but very clever who can predict when it will be achieved. It should be noted that acquiring a house for the family, for the comfort it can offer, and not for the purpose of making a quick money fast.

That should refrain from buying ?

Households, whose finances have been weakened during the crisis or in one of the jobs is at risk, however, should stay away and wait until their situation stabilizes.

In a market where prices are falling, these families will face considerable losses if the circumstances should require them to sell quickly : in addition to the loss of value that they will have to cash out, they will have engulfed thousands of dollars in law-changing, moving expenses, penalties mortgage and sales commissions.

In short, it would only aggravate their misfortunes.

It does dark that if our finances are in concrete.

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