Not sure if we lower mainlanders are particularly resilient to the world economic situation or if our heads are simply “in the sand” but our local real estate market continues to be busy. We are seeing sales happening and plenty of showings on our listings. My thoughts are that perhaps as many buyers are out there looking as there were one year ago when the market was hopping. The difference is that only half of them are actually buying. The other half are waiting for the bottom of this trend to be signalled.
One thing is for sure, it’s a great time to buy a home. Why? All the usual reasons; prices are down to relatively affordable levels; there’s no hurry, buyers can take their time; selection is good and most importantly financing rates are down significantly. 5 years rates are as low as 3.6%. That’s pretty low. About 6 months ago, with rates at 5.5%, you would have paid $610 per month to borrow $100,000. Today, at 3.6% that $100,000 will cost you just $504 per month, a savings of $106. That’s a savings of 17% on your largest expense. Couple that with the fact that home prices are down 20%-25% and the savings just pile up.
