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First Time Buyers - What are they thinking?

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I have heard so much about real estate lately from "first time buyers" who say they want to wait until the market "crashes"!!

I would love to know - When is the market going to crash in Victoria?

Fact is, first time buyers rarely seem to purchase when the market is a "buyers" market, for the simple reason that it is not low enough for them.

As history shows, those buyers always purchase in an "up" market because they then feel the need to buy before it is too late or before they lose out.

It would be interesting to hear other realtors' thoughts on this.

Posted by David Stevens on 05/18/2009 10:30 PM

Comments (4)

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4 Comments on First Time Buyers - What are they thinking?

MAY

Most buyers cannot time the market correctly. When things hit a bottom, rates are normally much higher and then they cannot afford the lower prices.

Jim - I agree with you - but in Victoria right now, property prices are lower than we have seen for a while, and mortgage rates are also really low. So it couldn't be a better time for the first timers to get a home of their own. I've recently sold to a few young first-time buyers, but I thought there would be many more.

JUL

Hi David,

I'll give you my 2 cents from a mortgage specialists perspective. We've seen a lot of pre-approvals lately and people just sitting on the fence, even letting the pre-approvals expire as they are waiting for the market to "bottom out". I guess they just want to hit it perfectly and usually they miss it. Prices are the lowest they have been and rates are the lowest they've been. Even if house prices drop a bit more, fixed interest rates are more than likely not to go down much more. As a matter of fact, fixed rates have crept up a bit in the last two months and the general census is that lending rates will go up within the next couple of years due to all the debt caused by the recession. If rates go up they are paying more for their house anyways, maybe not in the price but in the interest rate. That's if they can still qualify when rates go up.

JUL

Hi Carola - thanks for your comment ... I think you're right about the rates going up within the next couple of years. Since I wrote this comment, 2 months ago, about First Time Buyers, I have now been contacted by more young couples who are now actively searching for property.

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