If you’re a homeowner, what do falling prices mean to you? You might assume that it’s a bad time to sell. But guess what? It could mean it’s the perfect time to buy the home of your dreams!
Do the math, and you see that market downturns can actually work in your favor. Homes are listing at prices that are truly affordable. If you’ve already built equity in your current home, you could parlay that into the purchase of a terrific property.
When prices do rise again, and you know they will, you will have made an excellent investment for the future. If the home you really want was previously offered at $500,000, but the price has fallen — let’s say 20 percent to $400,000 — that’s a sweet deal, even if your own home has lost some value.
In any home purchase, there are usually some concessions: location, style of architecture, or any number of features. If you made some concessions when you bought your current property, and you can replace the negatives with the positive features you’ve found in another home, now is the time to make your move.
Once the market turns around — and again, you know it will — you’ll find your appreciation will be greater in the new, larger home. It’s an upgrade at an opportune time that makes good investment sense.
The Placer County Association of Realtors is the professional trade association representing approximately 3,300 Realtors, affiliates, and other related representatives in Placer County. Call them at (916) 624-8271 or visit their Web site at www.pcaor.com.