What Lies Ahead?

April 22, 2024

February 22, 2024


What Lies Ahead?


Needless to say, since the interest rates went up, the number of sale and prices have gone down.


Many homeowners are waiting for the prices to go up before putting their houses on the market. Some buyers are waiting for the prices to go down even more before buying. While some buyers, being convinced that the rates will drop by the end of summer (which will cause many potential buyers on the fence to start buying, resulting in multiple offers and thus, the price shooting up quickly), are starting to buy now to avoid all that.


I believe that the rate will have to drop by at least one point to make a considerable dent. If the rates don’t go down at all this year, there could be a big supply of homes on the market which could hurt the prices even more.


Probably, another bigger challenge that the homeowners are facing, is the mortgage renewal dates that are coming up for many. That will be disastrous for many homeowners, because not being able to pay often results in a power of sale.


One of the many reasons I believe the banks will do something with the rates sooner rather than later, is because banks don’t want to take over the houses and become homeowners, and then have to sell them. That is not the business they are in, and that’s not what they want to do.


When the mortgage renewal time comes, I strongly suggest talking to two or three different banks/brokers, to ensure, among other things, that your new mortgage does not contain hefty costs, when and if you decide to cancel the mortgage.


Remember, banks need you and want you and are your friends only when you are in good financial standing. It’s all about the business.


Feel free to contact me should you have any questions or concerns about mortgages and renewal of mortgages or any other real estate matters.


Ecko Jay

Broker of Record / Owner


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