The media is reporting a lot of bad news about the real estate industry, but they're neglecting to report for whom it is bad, and for whom it is good

Hello,

The media is reporting a lot of bad news about the real estate industry, but they're neglecting to report for whom it is bad, and for whom it is good.

Certainly we are seeing fewer buyers, lower housing values and longer market times. This hurts two groups of sellers: those who bought at the height of the market and are forced to sell now, and those who are selling their last home and moving to retirement

But there. are two groups for whom this market provides huge benefits; first time buyers and move-up sellers.

• The first time buyer is rewarded with lower entry prices and lower interest rates.
• The move-up seller is rewarded with a net gain by being able to buy at a large discount. The loss you experience on your sale is exceeded by the larger gain on the purchase.

For example, given a 10% reduction in market value, your $400,000 home fall in value to $360,000, but your destination home fell in value from $600,000 to $540,000. At the peak of the market you would've paid an additional $200,000, but now the difference is $180,000. You're $20,000 closer to your next home!

Some buyers, however, are trying to wait until the market bottoms to make their purchase. While an admirable goal, they will find it virtually impossible to achieve. The bottom of the market is not an absolute position. It is a position relative to, and determined by, when the market has gone up. So by the time you know the bottom, you're past it.

It is better in so many ways to purchase based upon your current needs and begin enjoying your new home. The market may bottom beneath your purchase price, but will eventually rise to surpass it. In the meantime you're enjoying your new home

Here are the benefits to buying before the market bottoms rather than after:

• Lower interest rates (they will rise when the market starts rising).
• More inventory (in a rising market your choices are fewer).
• Relaxed pace (a rising market brings buyer competition and multiple offers).
• Time in home (by buying NOW you can ENJOY the home).

If you and your family feel that your life would improve if you made a move, then let's get together and discuss the possibilities. I will analyze your present home's value and the destination options to determine whether you can benefit from making a move in this market.

Sincerely, 

Timo Yannopoulos
CRS, GRI, e-PRO, WHS.
Real Estate Consultant