When considering the best time to purchase your first home, or move to an upgraded space, many people try to factor in fluctuating interest rates and market conditions. While these factors are important, there are other important considerations to make.

What is the most important thing to consider when it comes to timing the market? Jesse Abrams, Co-Founder and CEO of Homewise, Brookfield Residential’s mortgage partner shared some tips and ideas on how to time the market, and what the most important things are to consider when you are ready to buy a home.

Putting yourself in control

When it comes to buying a home to live in, Jesse outlines the most important timing to consider is your own. While the interest rate announcements can have some influence on your mortgage payments, working with Homewise will get you access to the best rates, whenever you are ready.

While you can consider the Bank of Canada interest rates, which are announced eight times each calendar year, with 2024’s most recent announcement landing on June 5, this may affect demand, which often affects pricing. This can make timing the market extremely challenging and time consuming. Instead, it is important to first consider factors you can control. How much have you saved for a down payment? What is your overall budget? Are you ready to make this purchase? Once you have each of these questions answered, and you have determined you are ready to buy, the timing is probably right.

“It’s unlikely that we will see an exceptionally fast drop in interest rates in the next 12-18 months because it doesn’t make sense for the market,” says Jesse.

He explains that while a lower interest rate correlates to lower fixed mortgage rates, it also brings more people to the market. This increases demand, which can potentially lead to higher overall costs which is why Jesse believes it is important to simply make the purchase whenever you are ready to do so rather than basing this decision on interest rates.

“The best time buy is often right now, especially in an environment with potentially increasing interest rates,” explains Jesse. “The worst decision someone can make is thinking of a house as an investment, when it should be considered a steppingstone.”

“If you plan to live in a home for only a few years, you will be able to leverage it towards your next purchase,” he says. “Figure out if you want to live in a home for many years, or if it’s a steppingstone. Either way, the perfect time to buy is today, or whenever you are ready to buy a home.”

Essentially, the sooner you buy a home, the sooner your equity starts to build, which is more likely to create financial security in the long run opposed to focusing on interest rates and market conditions.

Next steps

If you have landed at the point where you are ready to buy a home, be sure to explore the show homes in Livingston, and chat with a Homewise agent to learn more about securing the best mortgage option for you.  Working with professionals who can shop the best rates for you will increase your purchasing power and affordability so you can make the best purchasing decision and buy as soon as you are ready.