The past few years have been challenging to say the least. Having to contend with a global pandemic, seemingly endless supply chain issues in the construction and other industries, a housing boom in the province and rising interest rates have certainly changed how things work for both buyers and us here at Havill’s.
Previously, we had enough supply of mini homes that potential buyers were able to visit us at our head office and tour several different show homes, choose the home of their dreams, and we were often able to have them moved in within a few short months. These days, the demand for mini homes is so high that our lot is empty as even our display homes were sold to families who needed them, so now our buyers are taking home tours virtually through videos and are needing to commit to homes that will become available next year.
“In the past few years, we’ve seen a huge influx of people entering the housing market in Nova Scotia. It’s not like anything we’ve ever seen before. Every home that went on the market was sold in an instant, and everything was going to a bidding war situation,” explains our Sales Manager and Home Consultant Viola Selk-Tramble, “While our new home buyers can avoid bidding wars, the wait for new homes is still many months out. We’ve been waiting for things to calm down, but so far the market is still hot.”
Supply chain issues mean that while a new home used to be built in 10-14 weeks, these days, it takes much longer—often because an essential part of the home is on backorder. This is hugely frustrating for all concerned.
Costs have also risen considerably. As the price of building materials rises, unfortunately so has the cost of a new mini home. Just as we are seeing an increase in gas prices each time we visit the pumps, pretty much every industry is facing rising costs. This, coupled with mortgage rates being on the rise, may have you wondering whether now is still a good time to buy.
While there are many factors to consider when buying a home, even in more stable times, we believe that yes, this is still a good time to buy a mini home. Here’s why:
- While there is some speculation that house prices in Nova Scotia will fall, this has been said many times before but has never actually happened. House prices in the HRM have continued to rise steadily for the past couple of decades, even through past recessions, and with our population continuing to grow, this trend is likely to continue.
- There are no bidding wars with brand-new mini homes. You buy your home to order and it’s yours, no need to worry about someone else out-bidding you. It’s a much less stressful process, for sure.
- Rents have risen considerably in the HRM, and the rental pool is shrinking as demand for housing rises. You will likely be paying as much on rent as you would a mortgage on a mini home, if not more, even with today’s higher interest rates.
- As there are fewer rentals available, landlords are able to be pickier about renting to families, or folks with pets. More renters are facing renovictions in the HRM than ever before. Owning a home of your own is much more stable in these trying times.
- The mortgage stress test that CMHC uses to ensure that people do not borrow more than they can afford should interest rates rise further. This operates as a safety net to ensure that homeowners do not borrow more than they can afford to pay in a mortgage. Knowing that “big brother” is looking out for your financial health, you can take peace in knowing that Canada will not allow you to borrow anything that is not well within your means.
When you’re ready to make the move into a new mini home, our knowledgeable team will take you through the process step by step. Reach out to us today and find out how your life might be if you had a beautiful new mini home that was building equity for your future and providing you with a stable home amongst so much chaos these days.