Many people are looking at the current real estate market as a terrible thing. Our team on the other hand is seeing the silver lining for our clients. Several years ago, the market offered us very good interest rates, but at that time, we were in the depths of a seller's market and home prices were in the "top dollar" range. Today, we have a buyer's market with rates that are nothing short of phenomenal. Whether you are a first time buyer or a homeowner with a growing budget, this market is offering us the "perfect storm". The clouds are full of savings, showering down on you.
Silver Lining #1: First-Time Buyer. It really is a phenomenal time for first-time buyers to buy a home. The rates are super duper....
Silver Lining #2: The Trade-Up. If you are thinking about going from your starter home to a family home, or from your family home to an estate, this is a great time to buy. Why? Two words: Instant Equity. Consider:
Let's say (for simplicity's sake) that the market is 10% off last year's prices across the board. Well, if your current home is worth $200,000, that means you would sell it for $180,000 (10% off $200k) in today's market. That doesn't feel very good. BUT, let's say you're upgrading to a $350,000 home. You would be able to buy that home for $315,000 (10% off). So you lose $20k on the sale, but you gain $35k in equity on the buy side. I look at this as the win/win for my clients. The result of our "perfect storm".
We are currently working with several of our clients to accomplish this exact scenario. If you are a first time buyer, give this a lot of thought. Renting is like tossing cash out the window. The rates are really good...call me for more info...For our current homeowner clients, if you have been thinking about moving, you can be in before the flowers bloom..
Happy January.
Charlene
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