Welcome to the MISS OUT MARKET!

Welcome to the MISS OUT MARKET... (Of Course an Agent Would Say This)

Real estate prices are increasing. They have surpassed what everyone [who was around] deems to be the highest high Calgary real estate prices hit in 2007.

Waiting to buy a home because prices will DECREASE? Waiting to sell your home because prices will surely INCREASE? I hate to say this, but you’ll BOTH be victims of the MISS OUT MARKET.

How does the buyer miss out?
If you didn’t buy in 2007 because prices were going to come down, and you still haven’t purchased, and are still renting, etc etc… You’ve missed out. With record low interest rates, even if you would have bought at the absolute height of the market, you’d be further ahead financially then you are now in terms of equity position in your home. Instead, you’ve allowed a landlord to gain equity for 5 years on your dime. {Insert SAD face here}

How does the seller miss out?
So you’ve waited out the post-2007 real estate crash we had in Calgary. A crash, you say? I didn’t notice. Now, all you need to happen in order to sell your home is for prices to go up slightly. And when they go up slightly, just a slight bit more. And so on. You, as a seller, will miss out because supply of homes on the market is what will most likely drive up prices. Lower supply → Higher demand → Higher Prices. So, when you go to sell, you won’t be able to find the house you actually want, and will have to settle for what’s available. You’ll end up having to compete for it, you’ll think you overpaid, etc…

If you’re a seller and a buyer, and want to move, what are you waiting for? In some cases, it’s completely justified waiting. Perhaps you can’t qualify for a larger mortgage, or a mortgage at a better rate. Perhaps you’ve got other commitments that are forcing you to stay put. What you have to remember is that when buying and selling in the same market (for example, moving within Calgary), it is typically a wash as to gains and losses. You’ll sell for more, but the cost of your purchase will be higher. You’ll sell for less, but the cost of your purchase will be less.

I’m not saying this because I’m a real estate agent and my living is earned when you buy or sell a home when represented by me. Yes, I’m an agent, but I’m also a buyer and seller (we bought and sold our home this year), and I went through all of the psychological hurdles that I assume every person I work with goes through.

Bottom line… Don’t miss out. And don’t convince yourself that you CAN’T miss out. Because that’s exactly what will happen. Speaking from first hand experience.