Is this really a buyers market? And if so what type of buyer should be aggressive?
Yes, definitely it is a buyers market and all types of buyers can be aggressive! Say, if someone is looking to buy a $400,000 home, this person can choose from many out there. The trick is to find a property with the lowest price in its category, something that offers best value for money and matches buyer’s unique needs.
Just yesterday, I showed a 600 sq ft (approx.) condo at Tridel Ovation, being offered for sale at $188,000. Last year, similar unit use to sell for a median price of $204,500. This is just one example of a motivated seller in a buyers market looking for a quick sale.
What areas in Mississauga are the hottest for real estate right now?
The question to ask should be: Which areas do you want to move in? In every price range there are opportunities out there. Not every seller is desperate to sell at any price. Those who are selling for financial or other reasons, offer great buying opportunities.
What if I am selling and buying?
This is probably the best time for people who want to ‘buy up’. Prices at the lower end have held their values better than the prices at higher end. E.g.; if your property is off by $25,000-$40,000 from its peak, what you want to ‘buy up’ has probably come down by more than the above range. Again, the trick is to sell first and not get stuck with two mortgages to pay for.
What are your thoughts on flipping houses in this market?
Not the right time in my opinion. There are so many listings out there. Some belonging to those flippers who cannot sell. Buyers may be able to find one of those flipper properties that may have all upgrades already. This can result in savings of thousands of dollars in future upgrades.
I recently bought a condo from the builder in pre-construction sale. Is it possible to sell before completion?
You can only sell if you have an assignment clause. This clause will allow you to flip before completion, i.e.; before building/unit is registered. The new buyer will buy the right to close and register their ownership of the condo. The assignment fees are paid to the builder by either the buyer or the seller. In absence of assignment clause, you need to close first, before selling. I can imagine what price you may have paid. I feel sorry, but no one could have seen a plunge in real estate and the economy as it stands to date. Going forward, you may hope to see a steady recovery in real estate prices. If you have enough down payment, your goal should be to keep your property rented to a good tenant. You may list your condo for sale.
What do you think about real estate prices in next six months?
I am bearish about real estate prices for next 5-6 months. Having said that, fire sale opportunities like the above are present in every market. The key is to work with a real estate professional who knows his/her markets well enough and finds you deals that you are looking for.