CondoAdvisory Blog

Well with all the negative news and events South of the border, as well as the market woes of recent times North of the border and all the attention on the different elections taking place, there is little activity or interest from buyers in the real estate market.

This is cause for an “Investors Alert”. More than anytime in recent memory, there are some great bargains out there right now.

Sure, if you look at the lower mainland as an example, it seems that priced have dropped about 5% in the last 4 or 5 months, and we may be in for another 5% before we see a stabilization in prices, BUT there are deals out there that represent much more than a 5% decline and as such even if we see a further decline, these are properties that will likely see an increase from what you pay in a shorter term than most.

Why is this the case, well there continue to be people who are caught with properties that they need to sell for one reason or another, and when you have a market as I described above and there are few buyers and even less interest, one of the only ways to ensure a quick sale is to price your property cheaply (for lack of a better word). This is not to say that most sellers are in this position so you should not assume that you will be able to purchase most properties at a significant discount, but if you are patient and are simply investing so do not need to be as picky as you would if you were looking for a home, I cannot think of a better time to go shopping.

I have seen instances where condos are selling for $100K less than just a year ago (and this is in the 400-500K price range. I have also seen a number of instances where the number may be 50K less. In both cases this represents much more than a 5% decrease and is not indicative of most of the units currently listed.

Having said this, if you are in the market for a home, not specifically an investment, don’t get to caught up in trying to find the great deal, first and foremost you must find a place that you will be happy living in and then make sure you are paying a competitive price, as you would in any market conditions. The real estate market as long been one of the most stable markets to invest in and this will not change, so if you are buying today and planning to live in your property, don’t worry, this market to will stabilize and increase again, the fact is you are better to buy in these conditions than when the market is in a steadily increasing position, now you have the power and negotiating position that you want.

For some reason people find it difficult to act in this way, just as they do with the stock market and other markets. Remember, those that succeed do so not by following the masses in their thinking, but by doing what makes sense without all the emotions that can cloud their judgement.