Newsletter

Buy First or Sell First in 2022?

We’ve said over and over that you’re all unique and we will make a plan to fit your situation. This is true. It’s also true that (most of the time) we highly discourage anyone from selling first when the market is very aggressive (and you’re not moving out of town). The big risk is that after you sell you will be under immense pressure to buy. One, the right home needs to come available within your budget. Two, you have to be the successful offer when there might be 8 other offers and 3 of them are feeling just as aggressive as you. Unfortunately, you may lose a few times and quickly 4 weeks have passed since you sold. There are only 4 weeks left until you move. AND! As the weeks go by prices move upward.

The instinct to sell first comes from a desire to know how much money we have to work with. We want to be able to make the highest offer possible. The risk, however, is that your buying power quickly becomes less and less as weeks (or maybe months) go by after you sell. Prices could go up by $100,000.

Buy first and you know with certainty that you’ve found the home you want. The super-short version of how this plays out is that you use an active market to your advantage. Immediately after you buy, price your home attractively and the offers should come without delay. The risk here is that you need to budget for a conservative sale price, just in case you don’t get that best-case scenario. This plan puts a little less money on the table at the beginning. You lose full control over the financial planning, and you gain control of finding and acquiring the right home at a price you’ve set within budget.

There are more detailed steps involved with executing this the best way. We’re here to help when it’s time for you to map out a plan. Contact Matt, Jeremy or Sara to build a detailed strategy for success.

Matt’s New West market update:

We are only two weeks into January and usually there isn’t enough activity to make any inferences at all. This year is different! There is already a lot of activity in all price bands. That means consumer confidence in long term values. That means there is a sense of urgency among buyers. And that could be a result of mortgage rules changing. Buyers with a pre-approval in place have a window of opportunity to make a purchase under the old rules. That could be a primary driving force. A strong start usually means a very strong Spring with high sales volume.

Property Assessments were released at the start of the month. I’ve already heard from several past clients to discuss appealing. If this has crossed your mind please read my blog (https://mattbrabbins.ca/blog/) and/or watch the included video.

Please help my business with any leads you can think of. I’m right on top of the market right now, and my client list is very short. I have all the tools to put to work. Please, help me put my expertise to good use.

Market Update & Predictions

New Westminster Condos – 2017 Fall Market Update & Predictions

Condos are STRONG! Why? Because people can afford them! Competition happens where there is the most interest. Don’t get me wrong, people are interested in houses, but a lot fewer people can afford a house, so there is more activity in the condo segment.

Buyers are watching condo prices continuing to rise. Young people want their first home, small families want a bigger condo and investors want in on the action too. The hottest segment is the low end of the condo market. It’s the most affordable, so there’s a group of buyers fighting to get into this neighbourhood while it’s still within their budget.

We are reaching the peak. We can already see prices settling in at the top end of the condo market. That will trickle down the price bands as the year comes to an end and we should see stabilizing prices.

New Westminster Houses – 2017 Fall Market Update & Predictions

House sales volume and prices have both taken a hit. Buyers are out there. They can feel that the pressure is off and they have time to make a decision, so they’re taking their time and picking just the right home, for the right price. New West buyers are not getting fooled or pressured into over-paying before someone else does. The houses that have too many compromises are getting over-looked and sitting on the market. Buyers are getting picky, because they can.

Expect further softening of the detached market while buyers bask in the luxury of time to reflect on their million, or multi-million dollar purchase.

Where is the market headed to close out 2017?

The big if, maybe, or what the ….? What impact will the lending rules have? They take affect Jan 1 2018. It is expected that they could drive up prices to close out 2017 as buyers rush to get in before the rules reduce their buying power. Then the limiting buying power could push prices down for the first quarter of 2018. As is almost always the trend, the Spring will bring more activity, competition and possibly drive prices up.

I suspect that if prices start to rise they will settle right back around whatever peak they dropped from in the first place. Market factors in and around New West seem to change monthly. I’ll have a new prediction by the end of November.

Simply considering what’s happening at this moment, the trend is toward stable prices, after some feeling out of the new lending rules.