What You Can Control And Opportunities

It can be difficult not to feel exasperated by the news these days. 

Every day seems to bring with is some fresh shock and horror being broadcast to us from all the various media outlets regardless the affiliation they may have.  Whether it’s the latest Trump craziness on tariffs, the harm mass unregulated immigration is causing, the mass spending without accountability across all government levels in the country, etc.  It is really enough to make you feel crazy, isn't it?

Well actually, no, it isn't. Or, at least it shouldn't be. No matter how wrong and unjust the actions are–and there is plenty of injustice to go around right now–those people and their actions do not have any inherent power to make us feel crazed, scared, or exasperated. Ultimately, if the news about the Trump administration is making us feel bad for example, that is something we have done to ourselves.

Now, in writing that last sentence, I can easily see how it would leave a bad taste in the mouth of many Liberal and progressives, especially now. As such, I want to make it very clear that in writing this, I am not in any way blaming the victims of Trump's actions, or saying we should ignore or excuse the many unjust actions of the Trump administration. On the contrary, I believe very much that we should all remain well informed.

However, I also believe that we need to keep a clear head and a positive attitude while staying informed. Negative emotional responses to news can lead to burnout, lashing out, and just a generally negative life experience. If we want to be as effective as possible at making a difference in the world, then we need to stay engaged over the long run, be kind and positive to those who we interact with and enjoy our lives. Doing this requires not letting the news, including the news about injustices emanating from any of the topics that I outlined above, dictate or manipulate our emotions. I also know that’s easier said than done, even for me.

Ok, but what does any of this have to do with Real Estate? Right now, we are about to go into a recession but unlike a normal recession, which is a dip and rebound we could be entering a longer period of continued slow or no growth at all which is driven by collective indecision.  This is caused by all the instability in the world right now and in particular here in our economy.  However, it doesn’t have to be.  There are still large sections of our economy that are NOT impacted by the Trump tariffs.  For example, if you are some types of government employee (Teacher, Nurse, Police, Fire, Municipal, Provincial or Federal worker, etc) these people have a great opportunity right now.  House prices are lower than they have been in a long time and interest rates are also low right now.  So, if you have ever wanted to move into a larger home, downsize, or first-time buyer, right now is a great opportunity for those people to take advantage of this Buyer’s market.  As a matter of fact, those larger detached family homes are feeling a bit more downturn than the smaller lower priced ‘starter’ homes.  

In a ‘Buyers Market’ some of the questions I always get are “why do larger family homes prices seem to reduce more than smaller homes?”  Well, the smaller homes are always lower priced, which is attractive to those younger first-time buyers because it’s in a price point closer to what they can afford.  However, those smaller 1000 – 1400 sqft bungalows are also sought after for people retiring and who are looking to downsize from their larger two-story 2000+ sqft family homes.  Whether that is because they don’t want as many stairs anymore or just don’t need that much house anymore.  Those smaller bungalows are a type of home that will work for almost every type of buyer and as a result those prices are not as negatively impacted in this current market compared to Condo apartments and larger two-story family homes for example.

Another question I am being asked right now is ‘What is the most important thing to do if you’re selling right now?”  Right now, there are 2 really important things that Buyers are looking for right now if you want to sell your home.  

1) As fully renovated as possible  

There is a lot of homes for sale right now and that means buyers have choice.  As a result, they are choosing the homes that are the most recently renovated over the other homes that still need extensive renovations and repairs.  Even if your home needs renovations and the price reflects that Buyers are still choosing to buy the more expensive home that is move in ready.  Primarily because it saves them all the work and disruption to their lives and also its easier to fit the cost into a mortgage than trying to find the cash to do the renovations outside of their mortgage. 

2) Price

With so many homes for sale the ones that sell are the properties that are priced properly.  Ok, so what does that mean.  Generally, it means a home that’s priced lower than what you initially thought or would like.  I say that because as a market softens a home owners knowledge of the market is based on what has already happened.  Therefore when a market is going down a home owner believes that if Jim down the road sold for X mine should be worth at least that when in reality the market Jim sold in was 4 months ago and that market no longer exists.  It’s a hard discussion to have but it does make the difference in a Buyers market.    

If you’re selling and will be buying another home you may be selling at a lower price than you may have wanted to, but you will also be buying at a lower price as well, so it does balance out.  I know that doesn’t make a Seller feel any better about it, but it is the truth. 😊

If you are looking to understand what the value of your home is in this market let me know and I would be happy to get you an accurate valuation.  Knowing your numbers will allow you to make informed decisions across a variety of topics like selling, investing, consolidating debt through lines of credit, retirement, etc.  

Thanks again for your time and I hope you have a great June!  If you enjoy the crossword please send me a pic of the finished one so I can add you to the monthly draw!