Whenever the real estate market sways strongly towards either buyers or sellers, there is a tendency to focus on the negative impacts. The main complaints are that homes become unaffordable or that selling a home is going to take a very long time.
As human beings, we are wired to focus on the negative effects in our environment. Although difficult to fight our natural instincts, it is wise instead to try to focus on the POSITIVE outcomes of various market situations.
The Buyer’s Market
In a strong buyer’s market, there are more homes for sale than there are buyers to purchase them. With an abundance of buyers, home prices drop. Sellers might see this as a negative: homes can stay on the market longer, and they might not get the price they want.
However, and it is a BIG however, a buyer’s market makes it affordable and accessible for more people to buy properties who in other markets would not be able to participate. A property might take a little longer to sell, but on the flipside it should be easier to purchase a new home! Plus, new home purchases stimulate the economy, as new homeowners tend to invest in renovations, new appliances, etc.
The Seller’s Market
Toronto has been in the grips of a strong seller’s market for years now, and it does not look like it is going to let up. Many people bemoan their inability to find housing that is affordable, but again, choose to look at the positive side.
Sellers control the price of their home, as there is wild competition from buyers to make an offer that is firm, without conditions and include the terms the seller w ideally wants. Properties are on the market for what feels like minutes, and sellers often receive the full value of their asking price – sometimes even more. They can then use this extra cash towards their investments, or in new renovations for when they purchase their new home.
In a utopian world, we would place a property for sale during a seller’s market to obtain the best price for our home, purchase in a buyer’s market. Sadly, that is not going to happen.
The best thing you can do is be prepared, think ahead and use the help of an experienced REALTOR® with proved results to help map out your strategy for selling and buying your properties. Done right, you will have a satisfactory sale of your home and make a smart investment on your next purchase.