"How quickly the tables turned!" is the response of most economists when faced with the question about the current Canadian real estate market. Experts have seen markets swing from a seller's market to a buyer's market before, but not quite this quickly.
CIBC World Markets economist Benjamin Tal said we have moved from a seller's market to a buyer's market "in a matter of months." Tal continues to explain that we can look to recessionary conditions and a shift in consumer confidence to explain this transition.
So, for anyone who has been considering a first time home purchase or moving into a bigger home, you should really start considering a move while the market is working in your favour.
Consider this: you are currently living in a condo/townhouse that could have fetched you $180,000 in the height of last year's boom, but now be looking at having to sell for $170,000 in today's market. $10,000 loss in value!!! Why would I ever want to sell now? In the near future, you also want to move into a larger property close to the $400,000 range but just can't see how you could afford it. What if I told you that you could get that $400,000 valued property for $360,000? So, by moving up in today's market, you have lost $10,000 on your initial investment, but gained $40,000 by taking advantage of this down market. That's a gain of $30,000 in value. You won't find that return in the stock market or your savings account!
I also forgot to mention that this scenario I just painted for you is not fictitious. My clients are now preparing to move into the home of their dreams, a home they could not afford until now.
My buyers were simply able recognize that as consumer confidence is low, prices will remain low. It is only when confidence is high, connected to an upturn in the national economy, that prices will rise. Buyers don't have to let the lack of confidence in others deter them from taking advantage of this great opportunity.
When we think about the best time to invest in the stock market, we know it is when it is low. "Buy low, Sell high" is the motto. This also applies to real estate. Buy when the market is low and you will reap the benefits of thousands of dollars in value gained by buying up in this down market.
For more information on Burlington or Oakville homes, selling or buying real estate, current market trends, or mortgage and interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Thanks for visiting.