Canadian real estates and land portions have now rapidly risen in value and prices compared to the rise witnessed in some years before. According to Canadian Real Estate Association, the new numbers indicated in relation to the Multiple Listing Service show a steep rising graph compared to previous years where the rise was gentle and slightly deflating as years went by.
This rise has got people wondering if it’s a good idea to buy either a house or a condo. Everyone has his/her own capabilities, desires, and financial standards and not everyone is expected to think the same. But all of these factors considered, below are some few but important things to consider before going to shop for a house.
Differing prices for the local markets
According to Canadian Real Estate Association, prices according to different local markets differ a lot. Prices of houses in Calgary vary with a higher
percentage of nearly 10% year-over-year compared to most of the other areas in Toronto which vary with a percentage of 8%. Other areas like Vancouver have a 6% varying percentage. This is an essential factor to consider so that one can weigh on the price in relation to the place desired to settle.
Places that are expensive are so because houses are in demand, the area is more modernized and developing, and there is a very minimal expansion space.
Market instability
Most people who bought houses a long time enjoy the value increases of the land they occupy. Land is one of the most common assets that enjoy longevity and a considerable rise in value. This makes land a vital asset.
Although sometimes the value of land might fall because of different reasons and so affecting the prices of the houses built. Most people have evoked a mentality that land and houses enjoy value appreciation and ignore the fact that it is prone to depreciation.
The 2008 house price-crash in the US is one perfect example where houses depreciated leaving millions of house owners having their houses less worth as they initially had paid for them. This same case was witnessed in Toronto between the years 1990 and 1996. Chances are also that if the economy slows down markets might fall again.
The duration of stay.
Potential buyers should keep in mind the duration they desire to stay on a newly bought house. This is because those who opt to stay for long never face a risk of being forced to sell the house when prices depreciate.