Posted 4.25.14 @ 9:20
Consumer confidence in the real estate market across the country reached a 3 year high this week, following a tide of optimism about the economy and the real estate market.
A recent Bloomberg Nanos Confidence Index report showed that last week consumer confidence hit 60, a number that surpasses the highest level of 59 back in March ’11.
But what does this mean? Does this mean that you should buy a house? Does this mean that if you sell now you’ll be able to find the right buyer? Let’s find out!
Canada Now World’s 11th Largest Economy
And it may soon enter into the Top 10. Unlike many other nations that have failed to rebound from the economic collapse back in 2008/2009, Canada has rebuilt and remade its economy to be stronger and better than ever.
Everyone is riding on a wave of enthusiasm. Incomes are up, home prices are up, and Canada’s fortunes have never been better…
But how realistic is it to expect the good times to roll forever? While housing prices may be slowing down to a more realistic level (homes can’t jump 10% a year, every year, right?), value is not only expected to stay level, but to go upward.
Values of Real Estate Expected to Stay High
This is an important component, especially when we’re looking ahead.
If you buy a house today at some of the highest prices in Canadian history, you want to know your home has value. There’s nothing worse than buying a home only to have it lose 20% of its value next year (we’re looking at you, America!)
While homes prices won’t be jumping up by leaps and bounds like they have the last three years, they will begin to move at a more realistic pace. A 3-5% growth a year in home values is much more sustainable than the 12% it’s been in some markets.
Canadians Confident in the Economy
And this is why so many of us are confident in the economy. We know that even if our homes won’t double in value in 7 years, they will maintain their value and move up over time. That’s the way it should be!
Think about it this way: would you buy a house if you weren’t sure if it was money well spent? Even a showcase or luxury home, a home that could be tough to sell down the line, needs to maintain its value. If people are too scared to spend money, to take the risk, to be the greater fool, it turns into the American Real Estate Crash.
That’s what makes Canada different. We control the market (even if some of us don’t like it), we look ahead and we try and make the smartest decisions possible. And that’s exactly why Canadians are more confident about the economy.
Are you thinking about buying a home? Not sure what Oakville has to offer or if it’s right for you? We’re the Goodale Miller Team and we sell luxury dream homes in all shapes and sizes. Give us a call today and find out what we can do for you.