Should I move? Can I move?
/When is the best time to make a move? This is John Schloz with this month's market update.
The best time to make a move is always when you or your family has a need that requires a move -
a new baby, kids off to college, moving to or out of town for a job. Quality of life is important so when life says move,
I'm here for you.
But how about if you just have the itch to make a move. How do you know if it's a good time?
One rule of thumb is it's always a good time to buy or sell if it's a seller's market.
In a seller's market prices tend to increase faster than in a balanced market. Selling you house in a seller's market is
advantageous if you're selling and buying to move up or down. You may not get top dollar for your sale, but you also
won't PAY top dollar for your purchase. If you wait to sell at the very top of the market, you'll need to buy at the top
of the market so there's no advantage to waiting.
Some sellers today think the market is due for a downturn and they think - "I'll sell today and rent for a while. Prices
are sure to come down." There are flaws to this logic.
Prices only drop in a sustained buyer's market. We've been in a strong seller's market for a long time and for prices to
drop, we need to first shift to a balance market and then move into a buyer's market for an extended period of time.
In 2005 when we had the crash it took 8 months to move from a seller's market to a balanced market and prices
continued to increase during that time. And then it took 3 more months to move into a buyer's market and 8 more
months to see prices impacted and we're in a market today that's significantly hotter than it was in 2005. Waiting
today may mean waiting for a year or two... or three for prices to drop. While you're waiting, you're paying rent, not
building equity, not claiming the potential tax advantages of home ownership and dealing with rising rental rates. the
shortage of housing in the Valley is not going away - more people are moving here than other city in the country at an
increasing rate, driving up demand and prices for rentals and purchases. Waiting to sell and buy will most likely cost
you money.
As a buyer, it may be frustrating finding a property in this very strong seller's market. But when you do, your equity
growth begins almost immediately. Real estate is the best way to build wealth and waiting to buy will cost you
money as well.
Whether you're waiting to buy or waiting to sell, waiting will most likely cost you money.
There are strategies to WIN in this market and I can help you do that. Just give me a call. I am John Schloz with HomeSmart