Is this the right time to sell or buy?
Maybe yes, maybe no. Much depends on your own situation & your goals. Industry experts are forecasting an average 10% decline for 2009.
In real estate, it’s all relative.
In our recent sellers market the complaint was “not enough inventory” & “I don’t want to get into a bidding war.” Now the same people are saying “prices are too low I can’t possibly sell now” even though there’s an abundance of listings.
Conundrum…what to do? The easiest thing is to do nothing….follow the crowd. However, these same people call us after a home sells and say “if I had known it was going to sell for that price I would have made an offer.”
You don’t know until you try. What do you have to lose? If you wish you had sold last Spring, don’t worry. Sell first, & you will definitely make up the difference on your purchase.
The average attached property (condo or townhome) in the Westside has dropped 11.6% since May 2008.
The average detached home in the Westside has dropped over 16% in the same period of time.
Let’s imagine the benchmark price of a detached home in the Westside was $1,000,000 in May 2008. If industry experts are right, this will reach $750,000 in the near future. Assume 2010 remains flat & use the industry average 3%-5% (using 4%) increase starting in 2011. You will have to wait until 2018 before we get back to where we were in May 2008 not including carrying costs.
If you sold in May 2008 and could buy the same home back for $750,000-$800,000 now…would you buy it?
Most homeowners, first time buyers & investors will wait until the media says things are getting better before they jump back in & by then you have missed the opportunity.
Let us know your thoughts by email or post your comments via Facebook.com or follow us on www.Twitter.com/TonyHepburn.
Oh, by the way, we are never too busy or your referralsJ