THERE are a variety of reasons for someone to buy a new home. It might have to do with size of family. It could be proximity to work or school. It might be impacted by social needs and wants.
Items such as garage capacity, size of yard for play and pets and how the sun hits the backyard in the afternoon can all influence the decision to purchase a new home. Every single factor is important to the consumer and we are all influenced to a different degree by each.
For the sake of this article, we are only going to look at basic financial considerations. Are the economic conditions in Manitoba today positive for the consideration of buying a new home?
Assuming you are not blessed with an excess of cash, one of your first considerations is the mortgage. There has been a lot of talk about mortgage rates, qualifying for a mortgage and changes to the process. However, all are still very positive. Long term fixed rates are still at a terrific level, under four per cent.
Just ask someone who bought a house in the early 1980s about rates over 20 per cent. Any talk of increases to the current mortgage rates are along the lines of a quarter of a point here or there. The days of runaway inflation are long past and well under control nationally and locally.
Manitoba does not have the reputation as a boom or bust economy. This allows the sage consumer to do some long range planning without surprises.
Our unemployment rate is consistently the lowest in Canada.
So, back to the question: are the economic conditions in Manitoba today positive for buying a new home? Absolutely. The Manitoba consumer is a savvy consumer and will look at numerous additional considerations before entering into the new home market.
However, given mortgage rates and conditions/qualifications, the Manitoba economy and all economic projections for the near future, this is a very good time to consider buying a new home.
Furthermore, although any time is a good time to do your research, the best time to look at what there is to offer is during the Spring Parade of Homes, happening March 5-27.
Mike Moore is president of the Manitoba Home Builders' Association.
