A sobering and sad news report from the Canadian Press today about the inevitable rise in distressed home sales to occur in Metro Vancouver and across the country.
Rising interest costs due to higher mortgage rates is beginning to take a toll on some homeowners. Combined with the high overall inflation and cost of living pressures facing everyone, carrying a mortgage and home is becoming too much for some property owners.
This is leading to some home listings, in order to make ends meet. Some homeowners are forced to sell because they have consolidated debt as best as possible, perhaps sought credit counselling and tried to negotiate the best mortgage possible through a broker. And still the math may not work to continue on with homeownership.
I have and continue to advocate that homebuyers maintain a strict adherence to tradtional affordability metrics in order to sustain homeownership over a full cycle of homeownership at any one particular home. I counsel and remind homebuyers on the on-going (and rising!) costs associated with homeownership, beyond just the mortgage payment.
Being house poor should not be anyone's goal. Maintaining financial balance is critical to ensuring that one can committ to other financial goals like retirement savings, emergency funds, perhaps funding a child's education etc.
Downsizing is also a great option if you are feeling a financial pinch that you truly know you cannot endure over the long-term.
Living within one's mean may not always be fun but it is the most empowering, liberating and sustainable way to go financially.