Leon Martin
Phone: (519) 669-5426 Ext 

Mobile: (519) 503-2753

When should you sell?

There is no easy answer to this question, but the importance of understanding the market cannot be understated. Cycles in the market, which are strongly influenced by the economy, can create either a shortage or a surplus of housing. Economic influence can be widespread (as we are seeing now), or it can occur in regional pockets, where sudden changes can affect stability.

In a seller’s market there are many buyers competing for fewer homes. This shortage has the effect of raising housing prices. Conversely, in a buyer’s market, buyers can take their time since there is an abundance of housing to choose from. The down side, however, is that this surplus can result in a slowdown of rising prices, and even in price reductions. This instability often makes people afraid of the market, when they need not be.

“Remember, the market value of your home may have dropped, but very likely, your new home will be purchased in the exact same market, at a reduced rate as well. In this case, knowing the market can be to your advantage!”

 

Understanding the Economy

During periods of economic growth, unemployment is low, resulting in high confidence in the future. During these ‘high times,’ demand for housing increases. During the economic downturn, employment opportunities are scarcer and demand for housing drops. Other things that can affect the market include changing interest rates, seasons and weather.

Rates, which are set by the Bank of Canada, tend to be influenced by global forces. In turn, these rates affect the interest that is charged on loans, including mortgages. If interest rates rise too high, fewer people qualify for mortgage loans and the demand for housing drops. This makes it more difficult to sell your home at the price you want. If you want to know more about rates, please visit my Dominion Lending website at www.leonmartin.ca.

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RE/MAX Solid Gold Realty (II) Ltd., Brokerage
3 ARTHUR STREET SOUTH
ELMIRA ON  N3B-2M4
(519) 669-5426
Real Estate License # 4714589