It depends on why the new homeowner is buying. If they are buying because they see the long-term benefit of owning their own homes and they are ready to make the change from renting to home ownership, then buying may be a good choice because of the low interest rates. However, I would recommend they find a good real estate professional who can discuss their personal situation to determine if now is the right time for them or not. In June, we started seeing price reductions and homes coming off the market then coming back on, both are signs that the market conditions are changing.
If they are buying because they want to see a capital increase in a short period of time to make a quick buck, now is not the time to buy. It is likely that we have already seen peak prices. As inventory increases the prices will level off.
When the pandemic has passed and the balance between supply and demand results in prices levelling off, it will be a good time for new homeowners to start looking. In a more stable buying climate, they may not have to compete with others when writing an offer so they can take more time making the right decision for their families.
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