When there are more people selling than buying, or the local economy enters a recession, it results in what’s called a buyer’s market. This simply means that the housing supply exceeds demand, which tends to lead to longer listing times and more conservative asking prices. While this side of the real estate cycle typically isn’t ideal for sellers, there are still ways to benefit from a buyer’s market—and in a big way!
If you’re upsizing, for example, the stage is perfectly set for a move. Think of it this way: the savings on the pricier property will be greater than any “loss” on your current home, which tips the scales nicely in your favour.
But do you buy first then sell, or vice versa?
Homes tend to take longer to sell in a buyer’s market, so it’s important to consider whether you’d qualify for two mortgages and how long you could comfortably carry two properties. For most people, it makes more financial sense to sell first, then buy. Keep in mind that there are more properties to choose from in a buyer’s market, so your chances of finding something you love are good—and sellers are more likely to wiggle on their price.
A buyer’s market is also ideal for first-time buyers entering the market, and for anyone looking to pick up an investment property. There’s plenty of selection and the negotiating power tends to be on your side. Finally, if selling in a buyer’s market, it’s an important time to have a REALTOR® in your corner. When you’re faced with low demand and high supply, you need the right pricing strategy, targeted marketing, and staging to stand out in the crowd. That’s where I come in, helping you every step of the way to make the process as stress-free as possible.