This could be the best time buying your ideal home. The current real market is adjusting to the uncertainty in the market place. The market has changed from the go go years to an unusually slow buyer's market. Seller expectations are now tempered, and more willing to look at your offer.
In the two previous downturns, one in the 1980s and the second one in 1994 to 2000 the market factors affecting sales were different. We now have low interest rates, and reasonably positive economy and low unemployment rate. Home prices are now 10% to 12% lower than those at the end of last year.
More Chocies
We have much more inventory on the market now than we have had in the past and sales have drop off a cliff. Now, may be a great time to invest in real estate because of the low interest rates, lower prices and a low vacancy rate.
For home sellers whose home prices had doubled in price over the past 7 years, the recent price adjustment of 10% to 12% is not such a big deal. If you are buying and selling in the same market, it doesn't matter if you sell at the absolute peak or purchase at the absolute bottom.
Home Ownership
The reasons for buying and selling houses continue, and home owners will continue to sell or buy depending on their circumstances. The market goes up and it goes down. It's up to each of us to take advantage of each swing.
The market now has a lot more choices for home buyers. You have a better chance of finding the home you like and at a price you can afford. If you are comfortable with your own finances and the home is the right one for you, then buy it. It is your home you live in and enjoy with your family. It does not matter if home prices go up or go down as over a time period you build equity through home ownership.
If you are looking for the latest Metro Vancouver housing market information or like to view homes for sale on the MLS system, visit my website at www.james-wong.net. Or, search for homes listed for sale using the Google MLS Listing Search below:
Great post James! (Check out your headline.) I'd love to feature it on our at Condo Benefits group.
Thanks Will for reblogging my post. We are seeing significant price decline in Greater Vancouver, BC the past 6 months. How your making is shaping up? I guess the just announced "fed's $600 billion government program to purchase mortgage-backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae should help to improve the US housing market".
Excellent points! Especially about how selling in this market will not cost you if you are buying in the same market.
Nice post, James! I actually practice what I preach -- I just sold my home (for about $30K less than it was worth 1.5 years ago), but I purchase a larger home that was probably worth $60K MORE a year ago. Definitely a fantastic opportunity!
Tony & Libby - thanks for your comments. There are opportunities for us to work the market and find buyers who can benefit from the wide selection of homes within the home buyers' budgets.
Kerry - In a buyer's market, a home owner has a better chance of finding the right home than being forced to compete with other buyers when demand is exceeding supply. Congratualation to you for doing another deal with multiple offers.
The prices are really starting to fall into line as sellers become realistic, and current lending rates just make so much sense for buyer's.
As you've pointed out, the selection right now for buyer's is good, probably as good as it will get.
Working with buyers who get this has been very enjoyable.
There are still plenty of fence sitters who need to be educated and reassured; I'm working on a few.
Oh I would love to have this post in my brand new group Advice for Buyers. I would love for you to join and add some of your wonderful advice posts.
John - Most of my buyers are planning to wait it out until the end of 2009. They are concerned prices will go down another 10% or more from the current level which is already 10% to 15% lower than the peak.
REbecca - Thanks for your invitation to join your group. I read your market is not as badly affected as some other parts of US. Hope 2009 will be a better year for you.
About three months ago we put an offer in on a house and the sellers accepted. Contingency was for our current house to sell for a certain amount. We have now lowered our house asking price to below that amount. I just found out that the sellers also lowered their asking price to the amount we agreed on. My question: If we sell our house for less than what it says in our contingency would that make our offer on their house void? And if it does what do think of us writing up another offer on the same house but for less than their asking price now? Would that be unethical? Hope this is not too confusing.
Thank you.
Chad - You may need to check with your realtor or a lawyer to find out if you can re-negotiate your deal with the seller. You may have subject conditions other than "subject to the sale clause" that allow you not to proceed with your deal. You need to find out if your contract allows you to void your offer.