Sellers Can’t Move… Period!

We have been noticing a trend happening lately with the sellers that we have been dealing with.  The number of listing presentations that we have done recently is very high… Many sellers, those who have purchased in the last 2-3 years, are having a difficult time versus those who purchased 3-4+ years back.

Of the sellers that have purchased 2-3 years back, some of them are wanting to upgrade their home, and some are even wanting do downsize…  But here’s the thing… Majority of them can’t do either!  With the market swinging the way it has over the last year, prices have gone back to the values of early 2007.  The sellers don’t have enough equity in their homes to make either move.  It’s hard to see the ones who are wanting to downsize, as their payments are a bit high for them currently, but they simply can’t.  Those who are venturing to sell, they are selling $30,000 – $50,000 below what they paid for the home, and in some cases even more.

What will this mean?  I think we will see condo prices and sales increase over the coming months, as their are many and I mean MANY new buyers now buying.  But the upper end single family homes, we will probably not see as great of an increase for some of the reasons above…

What are your thoughts?

Is Real Estate Spring Upon Us?

As you may or may not be aware of, there is a cycle that happens in the Real Estate Market each year.  Spring, Summer, Fall and of course Winter.  Just as you experience different seasons throughout the year, the Real Estate Market also experiences different seasons through the year.

In the Summer months, it tends to be slower as potential buyers and sellers are off prancing in the sun and on holidays.  During the fall, we see a rise in the number of sales and typically this is  good time to try selling your home.  Then we have Winter.  This usually happens from December through to February where again, buyers and sellers are staying indoors, because our Canadian winters are so cold!  And during these months there are some days where I will sit and rip styrofoam cups to speed up the global warming process… but it never works, and I wouldn’t suggest it, as it gets really messy too.  Rebecca’s not happy with me when I try this.

Then we have Spring.  This is usually the best time of year to sell your home, as many buyers come out of hibernating, and are looking for a new nest. Over the past year, in 2008 and even into 2007, we haven’t really seen any normal cycles.  Will this year be different?  We are starting to feel a buzz out in the market place with many buyers, and first time buyers coming out of hibernation and starting to look for a new home.  Only time will tell if we will have a ‘normal’ spring season.