Quote:
Originally Posted by Hemi-Cuda
Not sure if this belong in this specific thread, but not sure where else to ask. We're currently in the middle of house hunting with our condo on the market, and we were just contemplating lowering the price on it to sell it quicker and get a house. Now I'm not so sure, with the pandemic and oil price wars that seems like a pretty good recipe for another recession. I originally bought this condo in 2007, and a year later lost 30% of my value overnight when the '08 crash happened. I really don't want to repeat that mistake with an asset twice the cost
Would you consider buying a house right now, or waiting until later in the year to see what happens?
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If you can live with the loss, I'd sell the condo. I think the pandemic and price wars are less of a concern. My concern is the absolute over supply on the market and more hitting the market which further lowers the prices of these units. I think even if there is an overall drop in housing prices, detached homes will fare OK, but townhouses and condos will skid will be much more.
I ran the numbers on my townhouse and rather than take the bath, I am converting it to a rental unit and I'll see how things are going in 3-4 years.
I think buying in now isn't a big deal for a detached home. Others are desperate to get out, so if you see something you truly like, you can be more aggressive on price that might slightly better reflect the market in 6 months. IMO it's like waiting for something to go on clearance. What you want might not be there once the prices bottom out. Instead because you're looking long term anyways, getting a good but not best deal is enough for a place that essentially meets your criteria vs waiting later and paying a lower price, but having to compromise on some of the things you want in your home.
Renting can also be simple. A friend of mine sold their home, put everything in storage and rented a furnished suite at Executive suites for 4-5 months during a vacation and house search. No need to move in and then unpack, then repack and move out.