Canadians believe buying a home is a good investment

Canadians believe buying a home is a good investment

On September 7, 2011, the Bank of Canada again held interest rates at near-historic lows, maintaining the overnight rate at 1%. The ready availability of affordable financing continues to attract home buyers, including new buyers who are entering the market for the very first time. 

It’s really not all that surprising that Canada’s housing market is going strong.  The demand is there.  Canadians firmly believe that buying a home is a good investment.  According to the CMHC (Canadian Mortgage and Housing Corporation) 2011 Consumer Survey, the vast majority of recent homebuyers (a whopping 86%) agree that homeownership is a good long-term investment.  This view was shared by respondents in all regions of Canada.

With interest rates still at near-historic lows, for many people this is a good time to buy a home, especially if you have the financial viability and a lifestyle need to move.  However, real estate should be seen as a long term investment that adds to the quality of life for you and your family.  It’s not a get-rich-quick scheme or a winning lottery ticket.  Prices are forecast to moderate and stabilize through 2012, so those looking for a fast return from a ‘quick flip’ could be disappointed.

Some of the area major banks have raised rates or are warning about raising rates and several Lender's are offering to hold rates at current levels for months if applications are in before rate hikes.  Get pre-approved.  I have a list of great Lender's ready to help.

Even looking long term, investing in real estate is not for everyone.  That’s why it’s important to get some expert advice from your local Realtor®.