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Uncertainty in Real Estate

Blog by Sean Hulscher | December 10th, 2008

Our local North Shore market is now in a time of uncertainty.  Sellers are wondering why their homes have not sold and Buyers are waiting for the so called bottom of the market.  Tough times for sure.  However, there are excellent opportunities for buyers.  Here are three reasons for buying now.

Firstly, if upgrading, it is far better to do so in a low market than in a high one.  For example, if borrowing, it is better to borrow a lower amount than a larger amount.  30% of $1,000,000 is $300,000 and 30% of $500,000 is only $150,000.  Which would you rather borrow?

Secondly, because of the uncertainty, sellers do not know what the real value of their homes is.  This means that buyers who do their homework can buy properties at prices not seen since almost 3 yrs ago (subject to variation on area). 

Thirdly, selection is huge.  It has been many years since we have seen so many properties listed for sale. 

Once the market has sensed 'the bottom' negotiations will become tougher and buyers will have lost some advantage.  Now is the time to act if you can!