Time to Buy?

"He who hesitates is lost..."

My perception of the housing market and whether it is time to buy or not (see Home Buyers/Time to Buy?) got some support last week. Seems I am not the only one who believes the prudent thing for a Buyer to do is to pull the trigger now!

All the people a year ago who were lamenting that they should have purchased 2 years ago are the same people who are still sitting on the fence despite being given the opportunity of essentially going back in time to fix their mistake.

Human nature is a funny thing and unfortunately for some they are going to be lamenting not too long from now the same refrain, "I should have bought...".

Listen, no one has a crystal ball here. Could prices drop further? Sure they could.

Could interest rates drop further? Sure they could.

BUT, is it likely? The Bank of Canada Rate is at a historical low of just .5%. Just how much further do you think this is going to drop? There is only one direction interest rates can go from here... and that's up.

In a recent interview Warren Buffet was quoted as saying,"The current efforts to help revive the economy are likely to produce inflation that could be worse than what the country suffered in the late 1970s..."(see "Buffet Says..." below)

And once rates start to climb, any further price reductions will be nulified by the increased rates you will be paying.

Still need more reasons to buy? Check this out... Scotia Bank recently cut their 10 year fixed rate to 5.25%. That's unbelievable!

Unless you are living in your parents basement, you still have to pay rent. Sure owning is more expensive than renting, however ask yourself, "what is the return on your rent"? Now ask your parents how much they paid for their home...

read...

Fear Trumps Low Interest Rates

by Julian Beltrame, THE CANADIAN PRESS
Friday, March 6, 2009

http://ca.finance.yahoo.com/personal-finance/article/cpmoney/fear-trumps-low-interest-rates-canadian-consumers-20090306

Buffett says nation will face higher unemployment

By JOSH FUNK, AP Business Writer

http://news.yahoo.com/s/ap/20090309/ap_on_bi_ge/buffett_economy