"Buyer's Market" - Property is selling very slowly - there are more listings than buyers so the sellers who truly want to sell have to reduce their price.
"Seller's Market" - There are more buyers than sellers - properties are "flying off the shelf" so to speak and sellers expect to get at least their asking price.
So when is it a good time to buy or sell?
The Real Estate Market is just like the Stock exchange - it can change rapidly and have it's ups and downs along the way. So too, can your Real Estate Bank Account - I call the equity you have in your home your Real Estate dollars. As you wait for prices to go up increasing your Real Estate Bank Account then the home you want to trade up to will have gone up in value as well meaning that you have to make a larger deposit to your Real Estate Bank Account to make that purchase. AND- there is never a guarantee that prices will go up or go down while you wait.
What I ask my clients is - Are you trading up or downsizing? If you are downsizing it is probably a good time to wait out a Buyer's Market. However, if you are upgrading the time is never better than on a Buyer's Market providing there is a percentage loss across the board. If you are trading up in value during a Buyer's Market it means you may lose that percentage on the property you are selling but you will save more money on the higher priced properties subject to the same percentage loss.
Same for first time home-buyers, there are really good opportunities available to save money on that first home during a Buyer's Market given that Seller's who are trading up usually anticipate and accept that the pricing on the property they are selling has gone down.
With interest rates are as low as they have been for 50 years and as low as they are going to get for the next 50, qualifying for a mortgage has never been easier. I work closely with a mortgage expert who can pre-qualify you for a mortgage to get you started on your search.
So if your are thinking of trading up or you are a first time homebuyer give me a call today to get started. Tell me what your list of "must haves" and "would likes" are and lets get going. Waiting is like rolling the dice.
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