For soon-to-be first-time home buyers Alexa Bailey and Kyle Suttie, it felt like a case of now or never.
In 2020, as the market began to heat up, it appeared to be the “closing of the door” for any hopes of one day purchasing a home, Suttie said.
However, as a brief opening appeared, they jumped at the opportunity.
As a result, they are now a month away from closing on their first home, which has the two feeling “ecstatic and nervous.”
The process of getting into the market was daunting as there’s a greater need for due diligence more than ever before. Bailey noted they visited many open houses, often wrote down pros and cons and did their best to avoid the duds.
“You don’t know whether you’re going against money outside, whether somebody’s got a lot deeper pockets than you do, so you reach down in your pockets as deep as you can, and you hope you come up with gold,” Suttie said about the current challenges buyers face.
Buying a home also comes amid conflicting opinions regarding the state of the market.
“It definitely seems like there’s a discrepancy between what the economists say and what the realtors say. The economists say prices are going up, and things are getting crazy, and realtors are saying things are cooling down, and I think the reality is somewhere in between,” Bailey remarked.
While many markets in Canada have noticed decreases in home prices, it hasn’t been the case for New Brunswick.
According to January data released by real estate boards in Moncton, Fredericton and Saint John, the MLS Home Price Index, used to track price trends, continues to show a year-over-year increase despite higher interest rates.
In a release issued by Greater Moncton Realtors, president Mike Power said they are “cautiously optimistic” sales have returned to the seasonal normal.
“On the other hand, new listings for the month of January were still trending below average and as a result overall inventory contracted for the fifth month in a row,” Power said.
“Consequently, conditions in our region are still quite tight and market balance continues to climb further into sellers’ territory.
“Only time will tell where our local market will head in the next few months, but the recent change in tone from the Bank of Canada suggesting a pause in their tightening cycle is encouraging and may well bring sidelined buyers and sellers back into the market.”
As for how first-time home buyers should approach these trying times, Suttie and Bailey advised patience.
“Hold fast,” said Suttie, while Bailey added, “remain hopeful and don’t settle on the first thing you see as well.”
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