RISK OF CHASING TRENDS

There has been much discussion on the pandemic causing buyers to look outside of urban regions. Isolation under a lockdown has caused buyers to seek more space as a trade-off against an urban location. While it is important to pay attention to trends, we must be mindful of the fact that it is especially risky to overpay on a trend and become saddled with increasing debt particularly when interest rates are unrealistically low and can only go up at some point in the future regardless of the fact that it may be a few years away. Most buyers have not amortized enough of their loan within a span of a few years in order to whether a significant interest rate increase. Anyone making a real estate purchase today at the height of a trend should have a plan to fall back on for when interest rates eventually rise. #recg #interestrates #realestatemarket #markettrends #commercialvaluations