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This amount of Buyer's remorse from purchasing a home is staggering...

Should you wait to buy a home or should you buy a home and wait? Of course, moderate increases in prices always make it easy to know that it's a good time to buy a home. And it also kind of just helps the market move. Sellers are happy, buyers are happy, and everyone seems to want to buy and sell real estate. But what happens when that changes is their buyer's remorse?

Are the people who bought homes in the peak of 2022 feeling pretty bad about it? And what do they wish they did differently? Well, today's post is all about a really interesting study done by Zolo Realty about exactly that, how much buyers and Morris is really out there and what do the people that bought the homes think of what's happening now? That's all in today's post and more. Let's jump into it.

What's good everybody? It's Darin Germyn from the Germyn Group, where we know you've only got one chance to either buy or sell your next home. There is no doubt that prices are down all across Canada. Greater Toronto housing prices were down in August, almost 19%. That's about $250,000 in the Fraser Valley, down about 17 2% or $206,000. Vancouver down 9.2% or $116,000.

How would this make you feel if you had bought a home earlier this year? Well, maybe not as bad as you might think. A poll done by Zolo Realtor, as I mentioned, interviewed about 1200 people in the greater Toronto area, but still good old Canadians nonetheless who had bought a home during the pandemic. They found that the large majority of them were quite pleased with their purchase. 63% reported they would still be happy in their home even if the real estate market dropped significantly.

There was also the buyers who relocated to a different province who were even more likely to be satisfied, which is perhaps may be driven by the cheaper prices they paid relative to the places that they moved from. I mean, they may be living in Saskatchewan, sorry, Saskatchewan, but still life is way cheaper there. And if you're happy to trade the ocean, the mountains, the great weather, and the best sushi restaurants in Canada for it, power to you. But there was also the risk takers who were fast and footloose with their buying decisions, waiving things like their financing and inspection conditions when they bought homes. Well, what about them?

A much smaller share of these buyers, but still significant. 58% express continued satisfaction with their purchase. But differently, 42% of such buyers are having a little bit of mixed feelings about their choices less, though 84% of those who paid over the list price during the Pandemic are still pleased with their purchase. Side note, this may be due to the fact that many homes were artificially priced during the pandemic. For although the Zolo Realty poll suggests buyers' remorse is not as widespread as the recent blaring headlines suggest, and those newspapers and online headlines love to get your attention, there are a few reasons why concerns about buyers remorse are exaggerated and not as widespread as you might think.

First, talk of remorse is mostly anecdotal and based on conversations with maybe a few Realtors who somehow ended up on the evening news rather than proper surveys of recent home buyers. Also, most buyers bought homes during the Pandemic to satisfy a need. The poll showed that 53% of buyers needed more space, 43% were tired of renting, 28% thought buying was a good investment opportunity, and 24% felt their previous home configuration just didn't meet their needs. Another reason for the lack of widespread remorse is that most homebuyers know that even with the lower home prices, their mortgage payments could still be higher because of high interest rates. We did a great post in August on this called Stop Shaming People that bought a home in 2022 at the market peak.

This showed that even the detached home buyers who in Surrey at the time bought homes at the peak were still ahead of those who bought in August after the significant price drops, but accounted for the interest rates at the time and how much they would pay extra over the course of five years to service that mortgage. If you didn't see it, check it out in the description below. It's a little tidbit for you, too. We are almost half a percent higher in rates today than we were in August. Higher interest rates also mean borrowers will pay much higher interest over the life of the loan.

In the end, buying a home is a long term decision for most families who intend to live in the same house for a long time. It's not just a financial investment, but an investment in people and in places. Any changes short term in the market is similar to that of day trading in the stock market, which I am told is a bad thing. For those buyers with a longterm horizon, remorse doesn't look like it's that much of a concern. So now that you know the numbers behind these, what do you think?

If you bought a home during the peak, do you have buyers remorse? Are you happy with your purchase? Are you happy with the interest rate you're paying versus interest rate today? Or if you're looking to buy a home, are you happy with what you're getting now versus what you could have got earlier on in the year? Leave your comment below and let me know what you think.

And while you're down there, don't forget to check out the link to my calendar, where if you're either someone looking to buy or sell a home, you can book time directly with me and we'll give you all the information to set you up for absolute success in whatever your home purchase or sale endeavors are. Look, guys, I want to thank you for reading again. I'm Darin Germyn from the Germyn group. You've only got one chance to buy or sell your next home. Let us help you get it right.

We'll see you on the next one. Cheers.

WATCH- Stop shaming people that bought homes in 2022- https://www.youtube.com/watch?v=C4Bq3R4y6QY

Watch the full video here: https://youtu.be/NKuw63qzueE

DOWNLOAD our NEW free PDF: 4 Ways to increase the value of your home by 5% in a weekend!
https://germyn.ca/download-guide.html

DOWNLOAD our free PDF: 6 Things First Time Home Buyers Screw Up!
https://germyn.ca/fthbpdf.html

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The Germyn Group
Darin Germyn PREC* & Adam Howsam
Macdonald Realty LTD
homes@germyn.ca | 604-542-2444 | germyn.ca
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