Yes! It is a great time to buy a home in, Newfoundland. There are a few cases when staying put might be your best bet but for the masses in the housing world it is a really great time to buy.
After 5 long years of a down market it finally feels as though the dust is finally settling in Newfoundland and the worst is over. That is not to say that it is going to start getting better for everyone but for the general landscape of the real estate market, things are looking up!
The uncertainty of home values continuing to drop has hit its bottom and we are seeing the light at the end of the tunnel. Make no mistake, there are properties that may never go back to the golden years of 2013-2014 values but the silver lining is that the dust has settled and we are in a new normal for the values of homes and I believe 2019 is the beginning of things starting to go back up. In a normal market, values increase by 1-2% a year, I believe we are about to be “normal” again, whoop, whoop!
So, who is the biggest winner for buying in 2019? There are a lot of winners! I would say the industry as a whole is winning this year. Some of the things I have learned in 5+ years of real estate is that there were a lot of mistakes made during the boom. It is hard to lay blame on anyone in particular because things got really crazy really quick but the boom bust certainly left a lot of scars.
Things that are “must dos” in today’s market were skipped in a hot market. Things like getting a home inspection is the biggest one that comes to my mind. As a Realtor® who started in 2013, many of the people I deal with who are coming back to market bought during the boom and many offers didn’t even have Home Inspections as a part of the agreement, mainly because if they did they wouldn’t have gotten the home. When things were booming people did everything in their power to get a home by keeping the offers clean; Offer full asking, no inspection and quick closing. What the problem with that today is that the current market is NOT HOT and people get inspections every time.
What difference does that make? It makes a massive difference to someone who bought in the peek, never got a home inspection and now has their house for sale because now the home will actually get an inspection and unless you are a home owner who gets in your attic on a regular basis, on your roof and generally knows the ins and outs of whats behind the walls, you are about to find some things out about your home that are going to cost you money. I would highly advise anyone selling who bought without getting an inspection to pre-inspect their homes so they are prepared for what could come up.
Back to warm and fuzzy thoughts….who should buy in 2019?
First Time Home Buyers
Deals, deals, deals! What an exciting time for first time home buyers to be in the market. Vendors (Home owners) are motivated to sell, prices are the lowest they have been since 2011-2012 and Government even has incentive programs to help those needing assistance with their down-payment! The real estate gods have aligned and it is time to buy the first home. All price points have wonderful deals so whether you are coming in with a low or high budget you are winning.
Up-sizing Your Home
Even if you bought during the peek years you can still be a winner here. If you are in a starter home and maybe you have added a few little humans to the squad or maybe your career is more established and you are able to get a larger home you are in major luck. While you might break even or even lose on your current home you will be able to purchase a much bigger home for much less than you could have a few years ago. Some of the executive properties have seen drops of up too 25% in value. While that is a major sting for many it can be a major victory for today’s buyers. My professional opinion on the executive market is that it will take a longtime for those values to get back to 2013-2014 prices but the good news is that they should and if you buy and executive home today you have some immediate equity built into your future investment.
Winner, winner, chicken dinner! The investment market was hit pretty hard in the down turn and it is not discussed very much. When oil was king many people were buying executive homes and still had good money coming in so they also bought an investment property. It appeared to be a smart move for many but as the oil crashed and jobs dried up so did peoples money, in a hurry. It wasn’t only executive homes that were hit but the rental market also took a major hit. Vacancies in apartments were also at all time highs and home owners couldn’t keep up with their executive home mortgage payments, let alone their now vacant rental property. Many of the vendors for these styles of properties have the attitude “I tried to be a landlord and then the market crashed so now I want out of this property”. Their bad timing and experience is now the buyers gain.
One of the biggest winners! Cabins are a luxury item and when things crashed so did the value of cabins. Have you always wanted a cabin? Now could be one of the best times to get into the cabin world. Many people who didn’t buy investment properties with their disposable income bought or built cabins and spared no expense.
The biggest winner of all is anyone looking to buy an executive home in 2019. The executive market has taken the biggest hit and the road back to 2013-2014 will inevitably take longer than all other markets. Sure oil could skyrocket again and everyone could lose their minds and start overpaying for properties but I highly doubt that for the next few years. This market has dropped up to 25% in some cases and you can get a lot of house for a serious deal.
In the end my thoughts on the market are that good houses sell for good value. If you have a home that is reasonably priced, modern, up to date and doesn’t have any major deficiencies, you should be able to sell your home for top dollar. If you have a home that is dated (10 year old homes are considered dated) you are going to need to price it keeping those updates in mind. Buyers don’t care if the quality of your brown cabinets is top notch, they want a white kitchen and are paying top dollar for your home, minus the cost of their new kitchen and stainless steel appliances. It is a painful thought but we are a consumer society and everyone wants everything fresh and new and if you can’t offer that to the buyers they will simply move on to the competition.
2019 is going to be a great year for real estate! If you have questions or comments I would love to hear them! I am only too glad to meet anyone and give a free evaluation on your home! I tell my clients the cold hard facts on the market and would do the same for anyone who reaches out. Whether you are buying or selling in 2019 make sure you have someone working for you that knows their market! I have wonderful colleagues in real estate and the reality is that if you know a Realtor® who has survived the last 4-5 years you should be in good hands. Realtor’s work hard for their pay and the downturn has made the industry better for you!