It should be considered common sense but apparently some Sellers need to be told point blank that the same economy that is affecting their house value when selling is affecting the Sellers of the new home they want also.
Here's a sample from RE/MAX sales representative, Amil Paul of Toronto:
"The reason this trend has seemed to take on steam as of late is because many of these same Torontonians {people who bought condos as a first home in 2003-2005} have begun to really understand what this buyer's market is all about. Take Amy and David for instance, who currently own a condo in the downtown core. Originally they were quite disheartened to realize that the recent economic troubles have dropped the value of their condo from $300,000 to $285,000. Selling for $15,000 less was, at first, a very good reason to put their lives on hold. What Amy and David both soon realized, however, was that while the price of their condo has in fact tailed off, so too has the price of that dream home of theirs, in Oakville. What really put them into a happy frenzy was when they realized that while their modest $300,000 condo had dropped only $15,000, that gorgeous Oakville home had dropped from $550,000 closer to $500,000. So they're actually in a better position to make the move now than they had been previously. This same realization has been revealing itself to many of Toronto's condo owners."
This is not unique to Toronto. And despite the economy forcing a stabilization of housing prices, it is affecting everyone. So if you are upgrading, you will most likely see a higher reduction in the home you are seeking to buy than the reduction you are being forced to make to sell yours. And unlike the US and the media's comments on banks tightening up on lending, mortgage brokers are doing a booming business.
Robert J. Morrow is editor of www.HamiltonHomeReview.com, an online real estate magazine serving Greater Hamilton, Ontario. Click here for a FREE SUBSCRIPTION sent to your email monthly. Click here to receive new Hamilton area listings in your email daily.
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