WHY ARE YOU MOVING?
That’s a big question with typically big answers.
Work. Life. Those are the 2 fundamentals that drive any real estate market.
Job transfer, divorce, blending families and estate sales. Surprise twin babies where size needs instantly change. Mobility challenges. The need for something new, otherwise known as itchy feet. Then there are those who are on the hunt for their next (or first) investment property. They are consuming but not replenishing supply. Job loss and job promotion. The pursuit of a new financial landscape, for better or worse.
How much all of the above is happening will drive any market.
And from those categories, along comes motivation. Is it urgent? Is it one day or sometime in the next few years?
Some need to sell while others only want to buy. Many often do both. How many are selling versus buying versus both? And are they doing both things in the same market or in separate cities? Look no further than the east coast over the last few years where their market was inundated with out-of-province buyers who twisted their previously docile market in all directions.
So, we’ll ask again. Why are you moving?
Are you a buyer and seller or just one of the two? Is your move urgent or is the road ahead a little longer? Is what you’re buying and/or selling easy to buy and/or sell?
All of the above will determine your path forward and what to expect. For example, in a hyper sellers market like we had in early 2022, the seller who was only selling was the true winner. The buyer who was only buying was typically not having quite as much fun.
Fast forward to July and August 2022 and we have the inverse. The buyer who is only buying is likely quite pleased with these new market conditions. Afterall, they have choices, are not in competition and can likely even include conditions!
Meanwhile, the seller who is only selling is going to have a tough time letting go of the “geez…if we only sold in February or March” feeling.
What if you’re selling and buying?
First question: is the move happening in the same marketplace? For example, if what you’re trying to buy and sell is in the same city or area, in theory, they will have experienced a similar increase or decrease. Money in and money out.
From there you get into the nitty gritty of the buy and the sell. For example, Theresa has an apartment-style condo. Over the last 5 months, condo apartments have pulled back in value by 12% (fictitious numbers…).
Meanwhile, Theresa is looking to buy a detached bungalow. Good news for Theresa is that detached homes have pulled back by 19% on average.
Same marketplace. Different trends.
MOVING OUT OF TOWN?
And for the record, you should apply that same level of investigation into an out-of-market move. What is the market like where you’re selling and what is the market like where you’re buying? If the answer to the blog question is “because we have to”, well then, all of that data and information will really only be for your information. You’re on the ride whether you like it or not.
If the answer to the blog question is “we’ve always been interested in”, then you need to peel back some layers and make sure the big picture works. This whole real estate business is a complex puzzle with an infinite number of options and scenarios. There is no A to B in the process.
In any market, good or bad, there will be people moving so the key to success will be knowing how to tip toe through the steps. Sure, get advice and listen to your friends and family, but when it comes time to move, take a few moments to dig deeper into the “why are we moving?” question.
It will be time well spent.