Well it has started to happen.  Everyone is reaching their bottom line.

In an exaggerated market like we saw in 2007 prices were inflated based on demand and emotion not on math.  IE I can afford that house - I have the money (real or credit) - there for I should buy it - but someone else might buy it so I should buy it now.  In 2007 multiple offers and huge negotiations were the way of the deal. 

Today things have changed.  While many people are still calling it a recession they are (to be polite) wrong.  It was projected that all markets would bounce along the bottom of their markets and Real Estate being a very "normal" market is doing just that - bouncing along the road to recovery like everything else.  The trick with a house is - not everyone needs to buy shares in Apple because of it has a massive build up of cash and is poised to buy stuff...but EVERYONE needs a roof over their head.  So if your buying a 1st time home, an investment for rental or just upgrading or downsizing - Real Estate is not going away.

WELCOME TO A BALANCED MARKET (relatively)

It has probably been so long since people have been in a balanced market they don't recognize it.  A balanced market starts to happen when buyers are buying houses for realistic prices and sellers are realistic about their price.  Negotiations are no longer about going back and forth over $40,000 - they are about $5000 - $10000 based on the property and what is included.  Look at the recent graphstats on single family home pricing.

Prices have started to fluctuate up and down or bounce on the bottom as we look at it.  The reason we call it the bottom is - they are not going back down to recession levels (which lets be honest were mostly caused by panic) and they are not skyrocketing back up to 2007 levels (even though I liked that market better:).  Also a note about statistics is probably in order - they are easily manipulated.  IE the rise in pricing we see for a couple months on that link does not reflect an improving market - what it reflected was the high end sales that were going on.  IE just a few homes sold over $800,000 and that was enough to change the stats in an upward trend.  

Today sellers are reaching their bottom line and bottom line usually means loosing money.  No one wants that. So the deals are gone.

Sales volume is also fluctuating.  Volume is defined as the total volume of sales in a given time period.  Here is the volume link for this month.

Sales are up and down and only just starting to stabilize after the recession.   Again watch how stats can be manipulated going into the winter.  We could look at the stats and say sales are up - but the truth is over time they are actually normal.  Next month it will look like sales are down but history in this area stats fewer homes sell Dec - Feb.  It also shows there are more serious buyers and sellers during that time so you need to plan accordingly with your Realtor.

So the bottom line is tricky.  Get professional help and support.  Realtors can look at your home or the home your buying and research it's history.  They can look at how taxes are being raised over time, comparable homes in the area, comparable prices and price history.  Buying or selling your home is not just about how it makes you feel the first time you see it or walk through it - we want you to feel good 10 years down the road when you wake up in the morning.  

Take care and give me a call if your buying or selling - let's take 30 minutes to talk about changing the way you think about Real Estate.

FYI - I can be wrong - you can disagree - and if the links dont work on your computer just goto twitpic.com and look me up at erikaleighhaley

Have a great November!

Erika Haley

erika@erikahaley.ca

250.202.1058

In part one I really focused on the Seller but today is about the buyer.  The same situation applies – we are coming out of the largest recession in history and over the last year to year and a half there have been some amazing price decreases for buyers.

The main message here is that those days are coming to an end or have already ended if your reading this in 2020 and we no longer use money…. Oh don’t get me wrong the stories of people buying houses for an amazing deal will always exist they just won’t happen on the large scale that we saw in the throws of the recession.  So for the buyers there are also things to be aware of as we enter the fall…

Price
Price is what you need to know – not what the house price is but what you can afford (as per a financial institutions opinion not your buddy down the street).  Go get pre-approve, it doesn’t cost anything and it lets you know what price range you can afford.  Due to the market Realtors® are filtering viewing based on buyer qualifications – ie, you don’t get to look at the million dollar house if you can’t prove you can afford it.

Keep your head on…
I know that sounds funny but the people selling houses are people too.  It is important that you don’t walk into an offer $150,000 less than the listed price because from your view in the driveway the roof is shot. (And hopefully your working with a Realtor® that tells you this)  Seriously we see this all the time.  Look at homes in your price range and don’t focus on what the Gardening Channel is saying – they have no budgets.  What you can do it working with the right Realtor® - make an offer – negotiate it and then make sure due diligence is followed.  Inspections, proper financing and more – your Realtor® has a complete system to make sure your protected.

Condition
Oh yes we see this all the time too.  The renovation channels are great at showing the before and after but they do not realistically present the truth about the costs and timelines involved.  Really…. they don’t.

I have personally bought, refinished and sold 13 houses that I lived in and worked on over an 11-year period.  I can tell you that the TV is full of bad information.  Think twice about a renovation of “fixeruper” if you have never done it before or if you’re not really prepared financially and mentally to take on these projects.  Getting a low price on a house with a leaky roof because you think you can fix it is not always the right choice over a slightly smaller house with a solid roof.  Without the proper inspections and contractor quotes you might find out later that there is a lot more damaged that just having a leaky roof.  Be careful – there is a lot to be said for getting into a house you don’t have to work on.  My last home was 2 years old and for 2 years we did not lift a hammer or a pint brush – it was awesome.

Summary
Get pre-approved ASAP so your not disappointed later in what you can and can’t buy.

Keep you eye out for the deals but realistically they don’t come along very often and it is usually a really sad reason why it is a deal.

Use a professional negotiator/Realtor® to get the offer done and protect yourself from the largest purchase in most peoples lives. 

Renovations – think twice –they usually take twice as long and double the money you planned if you don’t plan and execute it properly…trust me I know.

And as usualy remember - I could be totally wrong!

Take care and have a great week!

Erika Haley