5 Reasons Why Now Is a Great Time to Switch from a House to a Condo
In the past few years, the housing market has seen some significant fluctuations. Factors such as the mortgage stress test and job losses have affected buyer affordability, and much of the market has shown apprehension toward buying in an environment of uncertainty.
But there is good news! For nearly a year there has been a shift in these trends, and it’s picked up remarkable momentum. We’re now in that sweet spot where making the switch from a home to a condo is ideal.
Housing Prices Are At All-time Highs
Multiple factors have played a role in housing price increases over the past several months. During the pandemic, consumers have, of course, been staying home, creating the need for more suitable homes and driving demand for available homes to purchase.
Couple this with the aforementioned apprehension in the market to list homes for sale, and the leftover inventory shortage has created a shift to a seller’s market. This naturally increases home prices.
With home prices at a high, now’s a great time to list your home to earn top dollar.
Not All Buyers Have Entered The Playing Field
For the past few years, uncertainty in the market has prevented some buyers from taking the leap on a new purchase, but that’s quickly shifting. Now’s the time to make a purchase before confidence in the market grows and more buyers enter the market. The less competition you have now, the better your odds are to get your ideal condo at your ideal price.
Since the price of a single-family house is on the rise, so are the values of other properties on the market. If you buy during an upswing in pricing, you’ll catch that ideal timeframe to sell your home high, and still purchase your condo at a price that allows you to earn equity quickly. You’ll lock in the purchase price of your condo while market prices are still increasing, adding to both the equity and value of your new property.
Mortgage Interest Rates Are Still At Record Lows
Not only are you able to sell your current home for a higher price, but you’ll solidify a competitive price on your new condo at record-low interest rates. By locking in these rates now, you’ll reap the benefits of earning equity while your property value grows and pay more on your principle in the meantime.
We are seeing interest rates as low as 1.53% on a 2- or 3-year fixed mortgage, which saves you tens of thousands of dollars over the amortization of your mortgage. Even a 10-year fixed mortgage is available for 2.95%, which is an incredible rate, especially if you are investing for the long term.
The Bank of Canada has stayed borrowing rates for the past three years due to the soft market, but with our current shift in demand, these rates may finally increase sooner than later.
Really Interesting Things Are Happening In Downtown Edmonton
The City of Edmonton’s revitalization plan for downtown is well underway, making vast improvements to the livability of our city’s core. The New Vision for Jasper Avenue is impacting the artery from 92 Street to 109 Street, intending to enhance the street for a more integrated lifestyle among those who bike, walk, drive, and take transit, and to create a more consistent look and feel to the area.
This revitalization will implement beautification measures such as tree planting, sidewalk widening, refined streetscape elements, quality landscaping and public realm improvements, and increased design standards for private developments. The Jasper Avenue New Vision is part of the City’s overarching Capital City Downtown Plan. Completion for this phase of the project is anticipated in 2022.
Edmonton’s housing market is seeing a shift in demand we haven’t observed in more than ten years. We’re in an ideal time to sell your current home and maximize your gains while taking advantage of still-low interest rates to retain your hard-earned money. It may be the ultimate time for you to make the switch from your current house to your dream condo.