Know how much you can afford
You must have a budget before you begin your search for a new house. Your budget will not just help you find a home you can comfortably afford, but also will dictate how much you would be willing to offer.
Unless you are a cash buyer, the best way to know your budget or the amount you can afford is to get pre-approved before you start your search. This will make it more transparent to you what you can afford and avoid the misery of falling in love with a property that is out of your financial reach.
Don’t ignore your agent
Your agent will be a big help when it comes to making an offer. With their experience, they will evaluate the market and do a price comparison of the property you are interested in based on the value of similar properties sold in the same area in the recent past.
Additionally, they will offer their professional advice on what they think would be a fair offer. Furthermore, your broker will help you out if they are aware of other offers on the table that would meet your needs. Therefore, be very careful with your choice of agent and always listen to them.
Understand that your offer is not just about the price
You should have in mind that sellers sometimes don’t consider offers alone when considering who to sell to. It is possible for a seller to turn down your offer, even if it was the highest and opt for a lower offer. . For instance, if your offer has too many contingencies or you are not preapproved for financing, the seller may be attracted to a lower offer with fewer contingencies and which has been pre-approved for financing. A higher offer is not necessarily a good offer. Strive to get preapproved first, then get your contingencies to the minimum if you want to present a strong offer.

Real estate sales in Canada has a very close relationship with the household credit growth. The past few years have seen the consumer credit go up, and this is mostly attributed to the low-interest rates. With the first interest rates hike in years, stats by the Bank of Canada shows that there is a deceleration in credit growth and this will have a significant impact on consumer spending, with the residential real estate sector being one of the most affected industries.

Recession and Deceleration of Debt

Debt deceleration may be a good thing, only that it will always have a spillover effect from the debt binge experienced when the boom lasted. In Canada, a significant portion of economic activity has always been linked with the increase in growth of the household debt.
Though this may not be a bad thing, it creates a dent on the road to prosperity for many families, especially those keen on taking up on huge investments such as investing in real estate. Any slight changes in how people spend will always have an impact in industries closely linked to debt growth, with real estate being one of them.

Though it is not possible to predict the future with absolute certainty, there are well-tested approaches which can be applied to trends and used to predict what is likely to happen after a few years. One of the most common methods, and which is heavily used by the Bank of Canada, is to compare short-term trends versus long-term trends. Orangeville real estate agents Ontario If the short-term trends are higher than the long-term trends, then a possible spike in growth may be witnessed. However, if the short-term trends are below the long-term trends, then a potential shrink may be in the offing. Currently, Canadians are looking at a 3-month annualized trend for the short term and a 12-month annualized trend for the long term.