Real Estate Curve

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First Time Buyers Take Charge Of The Real Estate Curve

As an agent in the GTA I have noticed that even with the real estate curve down we are getting more and more activity each and every day. Well not exactly as 2007 but we are getting more first time buyers interest in the market and the prices. From what I see the houses which are in a demand area are not drastically affected by this market slow down. If a house is listed in a hot area it will sell and it will sell fast. Homes which are run down and over priced are feeling the affect of the buyers market, specifically first time buyers. What people don’t realize which have homes and want to upgrade to a bigger one is that if they lose 10% on their current home they will get that 10% off a more expensive home which they are planning on buying, with this 10% off the more expensive home they will infact save even more. People just need to sit down and do some basic math. 10% off a $300,000 home is $30,000 and 10% off a $500,000 home is $50,000, with this your clearly save $20,000 for buying in a recession year, think about it.
Right now there is about 10:1 Ratio of homes to buyers, when the curve will go up with will be 1:10 ration of homes to buyers even with the prices down, you will then still compete for that low priced home and most likely over pay for it by 10-20% because the market will become hot again. Look what started happening in between 2000-2007, crazy market, up up up with the prices.

Posted under First Time Buyers
  1. easy recipes Said,

    Good points, well made.

    On the flip aside, the people that will struggle are those looking to down-size.

    Maybe people that have just retired.

  2. diane Said,

    We are playing the wait and see game as we need to sell a very expensive home then
    down size.

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