Oh, excuse me, I'm having a little celebration here because I just found out that the value of my house, came down 10%.
I know that might sound a little bit crazy but hear me out.
When I bought this home three years ago, I paid $500,000 for it, and at the time, my ideal forever home was actually $600,000 but I couldn't quite afford it so I opted in, at the $500,000 mark, and lo and behold, over the next three years, the real estate market dropped about 10% in the single-family homes category.
So my $500,000 home is now only worth 450,000. Bummer, but hold on, hear me out, there are two sides to this equation. In the meantime, the $600,000 house that I would have loved to have bought then, also dropped 10% in value. So today, I can buy that house for $540,000.
So, where three years ago there was a 100,000 dollars spread between the house I bought, and my ideal home, today the spread is only $90,000, thanks to the fact that the market came down.
So, if you're moving within the same market and you're making an upward move, especially if it's a modestly upward move, you may be better off to sell your current home at a loss today and take advantage of the loss that the other seller on the more expensive home, is also going to incur.
You could wait for the market to recover and for that $450,000 house to go back up to five. But in the meantime that $540,000 house is likely to go back up to 600,000.
So make the move now. $10,000 free equity in your pocket, that's something to celebrate
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I’m always happy to answer your Saskatoon real estate questions. Reach out by voice or text at 306-241-6676 or email me at norm at teamfisher.com
Royal LePage Vidorra
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Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.Less...
Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.
Norm is known for his passion for technology and can most often be found exploring and experimenting with the next big thing in real estate marketing. He was the first Saskatoon real estate agent to promote a home online and has been an early adopter of new technologies ever since. “Everything about this business has changed over the past 20 years, and it will happen again in the next ten. An open mind and a curious attitude are all that’s needed to continue to find new ways to serve our clients by delivering a faster, smoother, worry-free transaction,” says Norm.
In his spare time, Norm enjoys Crossfit and cycling, some years accumulating over 2,000 kilometres on the road. He’s a strong supporter of the Royal LePage Shelter Foundation and enjoys raising funds by joining fun, fitness-related initiatives like the Grouse Grind for Shelter. In 2015, he trekked the Peruvian Andes to Machu Picchu. In 2017 he walked the southern highlands of Iceland across mountains, sand, snow, ice, lava fields and forest for seven days. Collectively those initiatives raised over a million dollars for Canadian women's shelters.
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