When the economy is good people are confident with their financial future. They tend to spend money on going out to dinner, buying cars and buying houses. The world moves in predictable patterns and we all know that what comes up, must come down. In any healthy economy there is always a slow down. This is caused from corporate lay off’s, change in exports/imports or our surrounding companies that are suffering economic down turn. If the economy slows down enough, we get a recession.
A recession usually means that fewer people will qualify for a mortgage. Despite these situations there are always people who need to buy or sell their home. Either way there are buyers markets and sellers markets in every real estate market. Supply and demand is always the factor in any case.
Homeowners have a great advantage in a seller’s market because they hold the pricing power. With little supply and large demand, prices move rapidly. Selling a home is easy and discount realty companies thrive off these markets. When buyers markets are dominant, your house could sit on the market for a little while. Supply goes up and demand isn’t as strong which means sellers are more flexible when it comes to their prices.
The real estate market doesn’t move alongside the stock market of the currency markets. So timing an entry into the real estate market can be difficult. For example when the economy is booming, interest rates go up. This means it’s harder to get into a home. And when the economy goes down, interest rates become more appealing to buyers.
Currently Canada has some of the most sought after real estate in the world. Contact a local realtor that knows your area. Surround yourself with a professional team that has all the answers.
Shane And Sheleana work together to educate home buyers and sellers in Vancouver. BC is a beautiful place! Find a Realtor who knows how to showcase it.
Buying a home, Business Cycle
