Tuesday, Oct. 05, 2010
I want to buy but...
I have been asked a lot lately by concerned buyers who are looking to make a purchase in the fall and winter months but don't want to be in a position where prices decrease after they pull the trigger. It's because of the sheer numbers of those concerned I feel it best to tackle my responses collectively in this blog post.
None of what I'm saying to you today is rocket science, its again "Parting the clouds"* (*reference to another one of my posts a few months ago).
For anybody that doesn't already know - the market right now is slow. The average days on market (DOM) is in the neighborhood of 50 right and we have an inventory level of almost 3 months. Basically we are in a buyers market. As a seller, no need to panic as this is typical for the time of year and not a reflection of our economy. For buyers good deals are starting to come up as vendors are getting increasingly motivated to sell their home. Please remember however not all properties on the market have that motivation.
The standard real estate cycle allows for the September through December prices to slump slightly from the summertime highs. When I say slump - I'm talking somewhere in the 2-6% range (as predicted by high level economists and real estate guru's alike) from the summers peak. As a result these next 3 months are a good time to grab a good priced home, condo or investment property.
A lot of people just like the stock market try to time the real estate market and buy at its lowest yearly point (ie. December for real estate), I wouldn't be too worried about that. The reason I say that is much of the negotiating we can do for you will easily provide you the savings you are hoping for rather than just waiting to pounce on something in December. By the time December rolls around there is a lot less properties to choose from and you may not get what you want. The spring run-up in pricing almost always whips out any of the small depreciation that happens through the fall and winter months so if you buy and are worried about a loss, please don't as its very short lived.
Another reason I don't get concerned with the slight yearly ups and downs of the average home price is because in our present market you should be thinking long term. Whether you are a first time home buyer, trade up buyer, or investor you have to come to terms with our economic situation. We are expected at best to experience a very modest apprecation over the next few years and will not be experiencing boom like conditions anytime soon. Buy smart, buy when it makes sense for you, consult a professional and you'll have nothing to concern yourself with.
Thanks for listening - and I welcome any comments/questions or concerns.
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