As stock levels surge and sales tighten up, buyers can be tempted to find their motivation split. Are they chasing a good buy or a good home? When sales stagnate, stock levels swell. The excess stock is then in competition against other homes for buyer interest.
In such market conditions, buyers are likely to find what they want within reason. They can get a good buy or they can get a good home. It is still hard to find a good home for a bargain price though. The best homes still get the best prices, even in a soft market. If a buyer’s motivation is simply to buy a property cheaply, it does not mean that they are getting the right home for themselves. Buyers are well advised to focus on securing the right home not trying to nab a bargain.
Home is where the heart is… If you buy the wrong home for the right price, you won’t be happy in the long run. If you buy the right home within your financial capability, you will be happy in the short and long term, even if you over pay for it. It seems an unlikely fact, but its true!
Many financial advisors suggest that you should exclude your primary residence from your net wealth. Unless you plan to sell your home, invest and live off the proceeds, it does not matter what its worth. You buy a home to make you happy and secure.
Time is very kind to real estate prices. If you plan to live in a home for 10 to 20 years, paying an extra 5% today will seem inconsequential. If you plan to live in a home for more than 10 years, it is likely there will be at least one boom and one correction in that time. But until it comes time to sell, you will be largely unconcerned by such market movements.
Even in a soft market, the best homes often attract multiple buyers. The only homes that sell for a bargain price are the homes that no one else wants.
And you only know the market has bottomed out when it is going back up.
Source: Harris Partners.