Well it’s true we would all like to have a crystal ball that predicts the future of the real estate market. There are some tools that the experts use that help to explain the trends of the market.
As you know, what comes up must come down. If you put pen to paper it wouldn't be a simple straight line down and a straight line up. Like any other market, it goes up and down in waves. After reaching the top, it will go down and gradually find the bottom. If you look at the bottom of any curve it is generally flat. So before the market can go up, it must go flat first.
This flat line trend will occur when more and more homes come on the market for sale and less and less homes are selling. There are other things to consider. Think about the time of year of the city you live in. I would hesitate to say it is the bottom until I see the inventory stay steady through the summer and fall months.
Now is the best time to buy at the bottom of the market? Well let’s analyze this situation and apply human emotion to the equation. It is generally safer to buy at the bottom of a trend but the best deals are not always located at the bottom. They are often times on the way towards the bottom. Banks will always monitor the market closely and they know when the market is recovering.
Financial institutes are less likely to take a loss on their investments during the flat periods as oppose to the declining markets. A declining market is a good time to cherry pic the best homes, in the best locations, at the best prices. Many savvy real estate investors consider these situations a “sale on real estate”. There are a lot of real estate investors searching for that bottom.
If you aren't willing to take a risk then the time to buy might not be right for you, but if you are looking for opportunity then this is the time.
Are you taking your first look at being a homeowner in Abbotsford, British Columbia? If you’ve found the right location and you’re looking for more information on how to get started, Shane And Sheleana Harder are available to call anytime.
How To Understand The Real Estate Bottom
