Whether it is the stock market or the real estate market; there are a few learned wisdoms that still apply just as much today as they did during the roaring twenties. “The best defense is a good offence” and “Do not try to catch a falling knife”! Lets exam these expressions for a moment, starting with the latter first. Trying to time a falling or rising market, whether it be for homes or commodities, can inevitably rely just as much on luck as it can on research and experience and when it comes to actual pricing and timing, these two areas can be most unpredictable. The fact is there are just too many complex factors to consider: interest rate changes, new home inventory, the job market etc., which is why you should always seek the advise of an experienced Realtor to remove some of the guesswork, as much as possible.
If a price decline has occurred, which is what every buyer hopes for when shopping for a new or upgraded home, then we often do not know it has happened until after the fact, in retrospect, when market stats are tabulated by the Real Estate Board of Greater Vancouver. We all want to think of ourselves as only making smart and more importantly ‘profitable’ investments, but buying low and selling high means being solely reliant on the market to pick when you and your family make all of your most important life decisions. Think about what we are expecting and “is it even realistic”? We all wish to get an amazing deal on the home of our dreams, however, we also want that home to immediately start improving in equity, the second we purchase it, for a rock bottom price. Sound like reality?
The best option, for most people when contemplating a future purchase or sale, is to get prepared as early as possible. Study the market, with your Realtor, getting pre-approved, if you are a buyer and getting comfortable with comparable home prices and features, in your neighbourhood and city. This way when you are ready to make the big decision, you are armed with a wealth of knowledge and already have a Realtor on your team to take the luck and guesswork out this most important transition! Being armed with all the facts of current market conditions is the bread and butter of being a qualified Realtor and working closely with a good one can lead to a lifetime of reaping the benefits afterwards!