Housing Market is Still Hot: Local Experts Highlight the Significance of Reliable Advice
In the realm of personal finances, few decisions carry as much weight as buying a house. It’s a colossal investment that demands not only finding the perfect value for your money but also ensuring long-term financial stability beyond the closing date.
Recent data from the Canadian Real Estate Association (CREA) reveals a significant 30% drop in home sales in April 2022 compared to the previous year. Thunder Bay, in particular, witnessed a 5.7% decrease in average home prices, with single detached homes averaging around $345,000.
Wes Case, President of the Thunder Bay Real Estate Board, emphasizes that the current market favors sellers due to limited inventory, creating fierce competition among homebuyers. Additionally, interest rates have seen a notable shift, with last June’s rates surpassing eight per cent compared to the present where they hover just above four percent.
While getting pre-approved is a crucial step, Case underscores the importance of accurately assessing what one can genuinely afford. “It’s the difference between your maximum budget and what is truly manageable and comfortable,” explains Case, advocating for potential buyers to consult with Mortgage specialists who can help outline realistic financial plans.
The term “house poor” has long been in circulation, and for today’s generation of homebuyers, it’s becoming an unfortunate reality. The frenzy of home purchases during the pandemic’s peak, fueled by record-low interest rates, has left many ill-prepared for the financial responsibilities that come with homeownership. As the COVID era slowly retreats and markets fluctuate, Jay Tysoski, a partner and Mortgage Broker at Mortgage Connection, warns of the potential consequences.
Financial preparedness encompasses more than just making monthly mortgage payments. Tysoski explains that being “house poor” can result in unexpected sacrifices, such as limited travel, dining out, and other lifestyle changes that owners didn’t anticipate when em barking on the journey of homeownership .
To avoid such pitfalls, Tysoski emphasizes the importance of holistic financial planning. Understanding the fine print and potential consequences of stretching one’s affordability limit is crucial. Missing payments, defaulting on the mortgage, or even facing foreclosure can be severe repercussions of overextending oneself financially.
Both Case and Tysoski reiterate the significance of careful consideration, thorough research, and seeking guidance from trusted agents and advisors when venturing into the realm of homeownership. It is an investment that should not be rushed but approached with prudence and diligence to safeguard your financial future .
Source: https://www.tbnewswatch.com/local-news/housing-market-still-hot-local-experts-emphasize-importance-of-advice-7051302
