Clean Up in Aisle 3 - Issue 387

For a lot of people, the prospect of a slower real estate market brings apprehension and inaction. We’re seeing a lot of people sitting on the sidelines and avoiding the market. For those that don’t have to sell or buy, now might be a good time to sit on the sidelines.

However, when there’s fear and apprehension in a market, there are also opportunities. In this market, many people are choosing to cry over spilled milk, rather than staying positive. Fretting and worrying about the spilt milk in the local real estate market won’t allow you to see these opportunities.

Here are some of the benefits and strategies to being active in this market:

The Ability To Negotiate Better Deals

With less competition and urgency among buyers, the slower market provides a chance to negotiate more favourable terms. Buyers can leverage the lower demand to negotiate better sales prices. The sales to list price ratio has dropped below 100% and is approaching long term averages. There are sellers currently on the market that need to sell and are motivated to look at offers.

Click here to view the full stats report

Explore Diverse Locations

With the cooling of hot markets like Toronto and Vancouver, exploring less conventional or emerging markets can be advantageous. Smaller cities and suburban areas often offer better bang for your buck, with the potential for future growth. This is especially true when looking for rental properties.

Take Time to Research

A slower market means less pressure to make quick decisions. This allows for more thorough research and due diligence. Buyers and investors can take the time to investigate properties, understand market trends in different areas, and make informed decisions without the fear of missing out. The key here is to work with knowledgeable local agents that can advise you on the things the numbers may not show.

Look for Distressed Properties

Economic downturns often lead to an increase in distressed properties, which can be purchased below market value. These properties, while potentially requiring more investment upfront, can offer significant returns once the market recovers. Everyone is always looking for a deal! There is no bloodbath in our local market, the deals are there when you dig deep and show patience.

Not to sound repetitive, but you know who knows where to dig & find these distressed opportunities? The right Realtors®.

Long-Term Investment Focus

With a slower market, the focus should shift to long-term investments rather than quick flips. Look for properties with potential for value appreciation over time, or those that can generate steady rental income.

New construction is another opportunity for the patient investor/buyer. Builders want to keep their projects moving forward. Uncertainty and long time lines mean builders are often the first to add significant value to a deal in order to keep their order books full. Casual or out of town agents won’t know who to talk to about these opportunities.

Prepare for Future Market Shifts

Stay informed about market trends and economic indicators. A slow market today could turn around quickly, so be prepared to adapt your strategy as conditions change. Fortunately, you as a subscriber will be in the know before those buyers and sellers that are casually looking or not paying attention.

Strengthen Financial Standing

Use this time to improve your financial position. Work on building a stronger credit score, saving for a larger down payment, or restructuring existing debts. A stronger financial standing can offer more flexibility and better loan terms when the market shifts. It’s like training for a marathon where consistent small incremental growth will allow you to train for the event without having to actually run the marathon before the race.

This slower real estate market presents a unique set of opportunities for savvy buyers and investors. With careful planning, research, and a focus on long-term goals, you can successfully navigate and benefit from the current market conditions.

There is opportunity in the market, especially when the market is messy and confused. Don’t cry over spilt milk and try to run from the mess - instead, take the opportunity to explore it.

Oh, and last plug, I promise; your home selling or buying team should feature a local dedicated Realtor® playing a trusted role for you and being your constant in the ever-changing market.

Curious about what’s happening in your neighbourhood? Book a risk free 30 minute call with us today.

Thanks for reading & have a great weekend.

Paul

Appointment Calendar: https://calendly.com/homegrouprealty

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