The other day, we considered the case of a move-up in today's market. Our prices in the Tallahassee Real Estate Market have leveled off this year, but one of the readers wondered if doing a move-up in a depreciating market would work out for the "Mover." Assuming a depreciating market, where prices are down 10% for the year, the Mover would first have to sell a home for 10% less before he would buy a home for 10% less. Let's examine what that looks like.
If the market is down 10% selling, it is down 10% buying!
| Current Home | Future Home | |
| Old Value | $150,000 | $250,000 |
| Current Value (-10%) | $135,000 | $225,000 |
| Difference | $15,000 | $25,000 |
As you can see from this simplified example, moving up in a flat or depreciating market can have its rewards.
Subscribe to this Blog:
Joe Manausa, MBA, CRB, CRS | Broker / Owner | Century 21 First Realty
2365 Centerville Road | Tallahassee, Florida 32308 | 850-386-2001 | http://www.manausa.com/
Comments(59)