Will this be the year you Love it or List it?
With December just a few days away and the holiday season quickly approaching, I find myself reflecting over the past year in real estate and I’ve come up with an observation for the coming year.
I am calling the new year the year of Love it or List it for Mississauga real estate. Just like the show Love it or List it, I foresee that many people will debate on whether or not it is the right time to buy or sell their home. While I can’t predict the future, I’m going to predict that ‘Move Up Buyers’ such as people selling their condo to buy a bigger house will be the big winners in the foreseeable future.
‘Move Up Buyers’ typically consist of growing families and upwardly mobile home buyers. They currently own a home, have a good amount of equity and are looking for more space, or to buy a home for a better lifestyle. If you belong to this group I see a strong push to List it, as you will have more selection and more opportunity to secure a better home for a better deal.
Any softening on price appreciation on your current home will be offset by the same reduction on a larger, more expensive home. This means you save more and spend less money than you would if the real estate market was still an extremely hot sellers market.
As you can see from this example, the buyer is saving $20,000 thanks to a more balanced market. If you add in the interest on borrowing an extra $20,0000 over the term of the mortgage, then in reality this buyer is saving much more! So will you Love it or List it in the near future? If the kids are getting bigger and you need more space, or you want a better lifestyle that comes with a more prestigious home, then I say next year me be the year to List it!
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[…] All indicators from relevant sources point to a balanced real estate market in 2013. My guess is that by the end of 2013 home prices will be up or down within a couple of percentage points of what they currently are. No drastic rise or drop in prices, although I think that spring 2013 will be a great time for home buyers. […]
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