Home Buyers Regret
For many Canadian first-time home buyers in 2022, some will be suffering from home buyers’ regret. Watching prices fall on a home you just bought makes people question their luck and intelligence, amongst other things. The media stokes the gaslighting with clickbait headlines on stories that are just plain nonsense.
If you bought a home in Calgary in 2022, you might be stressing out about paying too much as 2022 draws to a close. Your stress is natural but not needed unless you need to sell in the next 12 months. Even if you do have to sell, consider keeping the home as a rental property first. We can help you with that scenario or other options.
Take a look at this chart. Since 1968 the average price of a single-family home in Calgary has gone up, down and sideways from one year to the next. But look beyond the year over year and examine the change in values over more extended periods of time.
Have a look at the 1980’s when mortgage interest rates got over 18%. There were some painful years for homeowners. Prices went nowhere for almost 10 years. Interest rates took years to get back below 10%. In 1982 the average house in Calgary required a monthly payment of over $1,500. As interest rates dropped, that same level of monthly payment didn’t happen again until 2003, when interest rates were 1/3 of the 1982 level. And home prices were over double 1982’s values.
The chart tells many stories of people’s lives in Calgary. There is one story that is the same today as at any time on this chart. People always need a roof over their heads. No matter what is happening in the constantly chaotic world we live in. At the end of every day, as the sun goes down. We all want a comfortable place to sleep. In 5 years, 10 years and beyond, that story will not change.
Print this chart out to keep handy anytime you have even a tinge of buyer regret. It will work out over time!
If you are suffering from home-buyers’ regret, there are a few things you need to do.
- Stop reading stories by news outlets motivated to sell advertising.
- Look at the long-term history of home values in Calgary.
- Consult with a Realtor/Landlord over the age of 40
- Know that you have other options – you do not have to sell
Time turns what you think was bad luck and a dumb move into the opposite. The best friend of real estate is time. So ignore the media noise. Make your payments on time. Take care of your investment, and it will take care of you in 2023 and beyond.
