WHY BUY NOW?
2017 REPORT FOR FIRST TIME HOME BUYERS
FROM THE BRANTFORD HOMES TEAM RESEARCH DEPARTMENT
We know it can be frustrating and challenging to be a home buyer in a hot market like Brantford.
Your instinct may be to wait on the sidelines for this market to cool off before you buy. This is a huge mistake. What’s happening right now is not a one-time inventory shortage, nor a real estate bubble. This is the beginning of a very exciting decade for Brantford homeowners, and a fundamental shift in our housing market.
For generations the Brantford real estate market was isolated and primarily effected by the local economy and job market. Today we are witnessing an unprecedented number of home buyers choosing Brantford to live while they commute for work.
The massive imbalance between supply and demand for homes in Brantford over the past two years has caused prices to increase like no other time in recent history. Brantford is no longer an isolated economy - we are now part of the larger GTA real estate market.
The large new home builders (who operate all over southern Ontario) have also seen this change, and have been increasing the prices of new lots in Brantford rapidly over the past 5 years.
Just like Vaughn, Markham, Milton, and many others - Brantford is the newest city to shift from an isolated market to part of the GTA economic machine. The announcement of new GO Transit service to Brantford will only speed up this process.
WHAT ABOUT A HOUSING MARKET CRASH?
The media loves to write exciting headlines about a housing market crash. The truth is nobody can predict the future with certainty, however this is what we know: in the last worldwide economic meltdown (2009) Brantford home prices dropped less than 10% and had fully recovered in under 12 months.
Brantford is full of homeowners, and even in a market crash everyone still needs a place to live. If the GTA real estate bubble were to burst (we believe this to be very unlikely) people would flee the over inflated markets of Toronto and its suburbs to find more affordable housing in cities just like Brantford.
The message is clear - buy a home now and be part of the exciting decade ahead.
THE COST OF WAITING
THE DIFFERENCE 5 YEARS MAKES
In just 5 years…
The average home price in Brantford is up over $150,000.
The downpayment on that home is up over $7,800.
The monthly mortgage payment is up over $700/month.
PLUS: The person who bought their home 5 years ago has paid $35,000 off of their mortgage rather than paying rent to a landlord.
WAITING TO BUY YOUR FIRST HOME CAN LITERALLY COST YOU OVER $200,000
STEP BY STEP: BEAT THE APPRECIATION TRAP
Brantford home prices are increasing rapidly which may stop you from buying your dream home in today’s market. Choosing to wait and save up additional money, or wait until the market is less competitive, may seem like a logical solution - however, the longer you wait to buy your first home - the less home you can afford. This is the appreciation trap.
- Stop waiting and commit to buying a home this year.
- Decide on the budget you can afford, including downpayment and monthly costs.
- Purchase the best house you can afford today, even if that means compromise.
- In 2-5 years you will have enough equity to sell this home and buy your dream home.