Great. It is a buyer’s market, which works for first time home buyers. But what if you need to sell a house too? How can that be good right now, in this market? 

It can really work to your advantage if you are moving up. Using percentages, if your home is worth 15% less today than it was 2 years ago and your target home is also worth 15% less today, than you may consider the transition a wash. Let’s convert those percentages to dollars. Your home was worth $250,000, but now it is worth $212,500, a decline in value of $37,500. Your target home, with a bigger yard, an additional bedroom and a finished basement was worth $450,000, but it is now worth $382,500; $67,500 less than 2 years ago. By moving up, you get the house you want and actually gain $30,000 in the market. 

Unless you are a professional house flipper, real estate is a long term investment. Historically, home prices have doubled every 10 years. Your $212,500 starter home should appreciate to approximately $425,000 by 2018 while your larger replacement home could be worth $765,000. The price differential has grown to $340,000! 

What are you waiting for? Start looking for that new home today!