New Homes in Edmonton: Why Now Is a Good Time to Buy
The media is always talking about whether it’s a good time to buy or sell a home, and the news tends to offer a lot of doom and gloom. These reports couldn’t be further from the truth.
Edmonton is a rapidly growing city with a flourishing housing market. If you’ve been thinking about buying new, you might find that now is the perfect time to buy the home of your dreams.
It IS a buyer’s market in Edmonton, and not just because we say so. Despite what social media or the news might tell you about “waiting to buy”, this will likely cost you more in the long run. And here’s why:
Increased Costs Lead to Increased Home Prices
New tariffs, supply shortages and changes to building codes lead to the increased cost of home. While good builders will do what they can to avoid passing these costs along to you (which is easier to avoid in a buyer’s market), prices will increase when builder inventory starts to decrease.
Interest Rates Will Continue to Rise
Over the last year, the Bank of Canada has increased it’s interest rate four times. And, with consumer price inflation expected to increase to 2.5 percent over the next 12 months (tariffs on steel and aluminum, for example), rates are likely to continue to rise.
Down Payment Help
In addition to down payment help for first time home buyers as provided by programs such as the Home Buyers’ Plan, quality builders around the capital region may also provide some down payment help of their own. For example, some builders may offer flex financing programs that include down payment assistance, credit help, mortgage subsidies, low interest rates and more. This is on top of their regular buyer incentives (especially for quick possession homes), and ample inventory that allows them to sell at affordable prices.
Lots of Home Styles
If it’s style you’re looking for, you couldn’t pick a better time to buy a home. Builders like Sterling Homes are offering a wide variety of home styles. You could get a traditional two-storey home, front-attached home, a laned home, a duplex, or a townhome.
In a move to make homes more affordable for Edmontonians, the Cornerstones program was set into motion by city council – a grant program allowing homeowners to include an income suite in either a new home construction or pre-existing home. This means that low or moderate-income families can STILL afford a new home, as the added income suite can help you qualify for a mortgage.
What’s more, Edmonton city council moved to change zoning bylaws allowing townhomes and duplexes to qualify for Cornerstones as well. This is good news for those looking for a new home but aren’t in a position to purchase a larger single-family home.
Start Building Equity
When you rent a home, you’re not building equity. That’s fine if you’re not ready to settle down, but throwing money away on rent when you know that you want to buy just doesn’t make sense.
There’s unlikely to be a major difference in the price of new homes over the years, so waiting a few years just means that you’re missing out on building valuable equity now. This is especially relevant for those looking for a new home in Edmonton as, with the city’s rental rates increasing, it’s better to have an affordable monthly mortgage payment (and build equity) than be at the mercy of unpredictable rental prices.
Edmonton’s housing market has shown steady growth over the years, and this trend will continue with the ever-improving Alberta economy.
You don’t need to wait for experts to tell you that it’s a good time to buy a home. As long as you’re financially ready for homeownership and have made some decisions about what you’re looking for, you should feel confident about shopping for a home. Come check out our showhomes to see what you can get with a Sterling home.