New Homes WEB-NH-NOV2017 | Page 18

Thinking about purchasing a new home ? Here are a few reasons why now ’ s the time to buy .

Take the Leap !

– KRISTEN DEMONE –

Thinking about purchasing a new home ? Here are a few reasons why now ’ s the time to buy .

WITH THE CURRENT state of the Alberta economy , many prospective homebuyers are questioning if now is the time to buy . Oil is down , the dollar is down , and we are faced with new governments on both the provincial and national level . Who isn ’ t wishing they had a crystal ball to see what the future holds ? While there is no certainty , there are factors in play that we can look at to help make a sound decision on buying .
While the existing home market prices cool off slightly , new home construction costs continue to increase . We are finding that many of the existing sellers purchased their homes at a time when prices were low . They now have enough equity in their home to move on the price if they really want to sell . People coming through the show homes often comment that they are waiting for a market adjustment , and while that would be welcomed by all homebuyers , I don ’ t see that as a reality in new home construction . It should be added that while prices cool off in the resale market , the risk to buy still remains large . There is no warranty coverage like you would receive with a new home , you don ’ t know what is behind the walls of the home or often who even built the home . Builders in the past weren ’ t regulated by the government like they are now and we continue to see even more regulations coming in to make sure homebuyers are protected .
At a provincial level , our government is cur-rently working on the Municipal Government Act ( MGA ), which is the law that empowers municipalities to shape their communities . A big part of that document relates to taxes on land that developers must pay to help cover the costs of infrastructure ( roads , water drainage , sewer , etc .) needed to develop an area of the community . With some of the changes to the MGA , there may be more services added into the tax for land , such as fire stations , that could have an impact on the overall price of a home .
Many consumers may have heard on the news that a new drywall tariff is coming into effect . A tariff is basically a tax on an imported good created to stop exporting countries from “ dumping ” the product at a low cost . It is designed to keep domestic prices competitive . Through the North America Free Trade Agreement ( NAFTA ), drywall originating from the United States , which imports primarily into Western and Northern Canada , will be taxed at a rate of 105.2 - 276.5 per cent . While we don ’ t have an exact dollar figure on what the end cost will be to each individual house , it will directly impact homebuyers . As a member of the Canadian Home Builders ’ Association , I am very thankful that we have strong advocates working at the federal level to reverse this tax and ensure homes remain affordable .
There are many factors such as price increases , increasing restrictions on mortgages and an unstable provincial economy that may also paint a “ doom and gloom ” picture , however , these circumstances are part of a larger economic cycle and signal the right time to make the investment of a home is now . The old saying goes “ buy low , sell high ”. Interest rates are still low , the cost of a new home in Lethbridge is still far lower than any other comparable city , the Lethbridge economy is weathering the economic storm , and unemployment remains at optimistic levels . When you sit back and take a look at the bigger picture , now is a good time to invest in a new home with the opportunity to build equity in the years to come .
Kristen DeMone is the new Executive officer of the Canadian Home Builders ’ Association-Lethbridge Region .
Page 18 New Homes November 2017