If you need an extra bedroom, want to move to a quieter part of town, or just want to upgrade for any reason, the current real estate market provides the perfect opportunity for some.
The FVREB shows that September 2012 homes sales were down 26% over the same month in 2011. People hear this news and panic --- “Ring, ring, realtor take my home off the market”. The For Sale sign is now off the lawn, so they dig out their warm winter woolies and anticipate weathering the real estate market storm. Not so fast …. there may be an opportunity lurking here.
As with all stats, you have to dig a little. The benchmark price for a single family home in the Fraser Valley was $533,400 in September 2011, increasing to $549,500 this September. Yes, that’s right, an increase. Homes in this range continue to sell. The reason is these homes are in the affordable range for many buyers in the market, particularly while interest rates remain low.
What has been hit the hardest are the more expensive single family homes … so dream a little. Is now that time? Opportunities like this do not come by very often. Prices of more expensive homes have dropped significantly in some areas. Also, I'll tell you a little secret, real estate is seasonal and winter is a good time to pick up a bargain. Also, to sweeten the pot a little more, winter is a great time to buy because homes show all their flaws. Is that a water leak ... is it drafty in here? You won't get distracted by the magnificent hydrangea and sun streaming in the windows and will focus on more important aspects of the home.
The old adage about the stock market is buy on bad news, sell on good. For real estate this parlays to trade up in a down market and trade down in an up market.
You can seek advice from your realtor and financial professionals on this, but work through the numbers. There is definitely opportunity in this market, but your financial circumstances have to be right for it.