Should Buyers Wait for Interest Rates to Drop or Buy Now?

The Calgary real estate market presents a key dilemma for potential buyers: should you wait for interest rates to fall, or buy now when more inventory and better deals are available? Let’s explore both strategies and help you make a well-informed decision.

Current Market Overview

With recent economic shifts, Calgary’s real estate inventory has grown. Many homeowners are listing properties now to benefit from high valuations before rates potentially shift again. At the same time, mortgage interest rates are still higher than what buyers experienced during the pandemic’s ultra-low rate environment.

Why Buying Now Might Make Sense

• Increased Inventory: There are more homes on the market, which gives buyers a broader selection to find the right property.
• Better Deals and Negotiation Power: With fewer bidding wars, sellers are more likely to negotiate. Buyers may benefit from discounts or favorable conditions.
• Building Long-Term Equity: If you plan to stay in the home for several years, even slightly higher rates today might be offset by future price appreciation.
• Refinancing Opportunities: Mortgage rates could decrease later, providing the opportunity to refinance to a lower rate.

The Case for Waiting

• Potential Rate Drops: If the Bank of Canada lowers interest rates in the near future, it could lead to reduced monthly mortgage payments.
• More Savings: Waiting allows buyers to save a larger down payment, reducing overall borrowing costs.
• Market Stabilization: Buyers might want to wait for greater economic stability to avoid fluctuations in housing prices.

What Experts Recommend

Real estate experts suggest that the best strategy depends on personal circumstances. If you find a home that fits your needs and budget, buying now makes sense, especially with the increased choice and negotiating power. On the other hand, if you’re not in a rush, it might be worth waiting for economic indicators pointing toward falling rates.

Conclusion: What’s the Best Strategy?

The decision ultimately hinges on your financial situation and long-term goals. If you’re ready and have found a property that fits your lifestyle and budget, buying now may offer the best value. However, if rates are a dealbreaker, keeping an eye on economic trends could be beneficial. Whichever path you choose, staying informed and consulting with a financial advisor or realtor is key.

To learn more about what Calgary’s bustling real estate market has to offer, contact the Top Calgary Real Estate Team today!

Justin Warthe

Team Lead

403-620-8746

jw@topcalgaryrealestate.com