Real Estate Bubble 700×292

Navigating a Potential Real Estate Crash

Home seekers may worry about the possibility of a real estate crash. Is it best to buy now or wait until prices drop? Do they run the risk of losing out on appreciation of their current home, while hoping more affordable options to show up?

the Housing Market Cycle

As we witnessed with the 2008 crash and 2017 real estate inflation, the housing market tends to run in cycles. It can be difficult to navigate at this point in time if you should wait or rush to purchase a home as some experts theorize the bubble could burst very soon.

First-time Homebuyers Need to be Careful

First-time homebuyers are particular impacted by the decision because the results of a crash after purchasing a home would be an immediate loss. Those individuals with property to sell while buying another will at least experience a tradeoff. When prices rise, both properties go up in value. When prices drop, both properties quickly depreciate.

Interest Rates

If you buy without the intention of selling for a while, the risk is significantly smaller. But what if interest rates are (likely) impacted as well? This is where it can become difficult to even afford the property you previously purchased.

Pay Attention, Don’t Predict

Although there is no magic ball to completely predict what will happen with the housing market, it is important to pay attention to the economy. Even better, speak to a financial expert who can offer some greater insight and expertise into the cycle.

Different people face different personal situations though that ignite their reasons for wanting to move. If you are currently crammed into a one-bedroom, 600-square foot apartment with your significant other and you want to have kids, waiting one way or the other may not be worthwhile. If you are simply looking for a bigger home because you think you can make money, it is best to move cautiously.

 

Bob Aggarwal

Mr. Aggarwal was one of the original founders of Canadalend.com, one of the largest volume Mortgage Brokerage houses in Canada. Mr. Aggarwal has over 12 years of experience in Brokerage and Lending in the small and medium business sector, as well as experience and expertise in the residential housing market. Since the inception of Canadalend.com, Mr. Aggarwal has been instrumental in developing the Canadalend.com operating platforms, and policies and procedures which have guided the organization to date.

x

Apply Online in 60 Seconds & Get Approved Now!

Please note * are required fields

Loan Details

*Purpose of Loan
* Do you currently own a home?    Yes   No

Personal Details

*Title
*First Name
*Last Name
*Date of Birth
*Email Address
*Current Address
*City
*Select Province
*Postal Code
*Residential Status
*Home Phone
Cell Phone

Agent/Comments

Preferred Agent
*Please tell us where you heard about us?

Sign Up for Free Promotions*

Would you like to sign up for FREE newsletters, offers and special promotions from CanadaLend? You may later unsubscribe.

 

Terms & Conditions

I Agree

We respect your privacy

Please note, if necessary, we may require further information from you to process your application. By clicking "Apply Now" you are consenting to receive future such e-mails from us with regards to your application.

* Your consent is sought by CanadaLend.com 675 Cochrane Dr, #104, West Tower, Markham, ON L3R 0B8
info@canadalend.com