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The High Cost of Waiting

House prices have been increasing steadily for some years now and there's no end in sight. In fact, the Canadian Real Estate Association recently predicted that the national average home price will increase from $276,974 in 2006 to $310,400 by 2008. If your goal is to buy a home that's around that average price, it's probably not in your best interest to wait before entering the market.

Think about it. You'd have to save an additional $33,426 in two years just to stay even with where you are right now! On the other hand, if you managed to get into the market and buy that same home today, then two years from now that potential gain of $33,426 in equity could be going into your pocket. If you add the increase in home prices, plus the equity you could lose, it all adds up to a very high cost for waiting... there's a potential difference of almost $67,000, depending on whether or not you act now.

 So, if you've been thinking of putting off entering the housing market until prices level off or you're in a better position to buy, you'd better think twice! Of course, this is just one example, based on the national average. Home values can vary dramatically from market to market and even between neighbourhoods. If you'd like to know more about local property values, what property types and locations are best slated for growth  and how much you could earn by acting now versus later, you know who to call.

Posted on Monday, April 2, 2007 at 08:58PM by Registered CommenterElaine in | CommentsPost a Comment

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