Selling in The ...
Hottest Real Estate Markets!

Over the past decade, we have had some of the hottest real estate markets ever experienced in both Canada and the US. Today, these hot housing markets have shifted dramatically from the conditions of just a few years ago.

A red hot market has been replaced by an economic collapse of historic proportions. The credit crunch and the collapse of the mortgage market has left a wake of destruction in the real estate market world wide.

This may be an excellent time to study and understand real estate trends. Before you let real estate trends dictate too much, make sure that you know what you are up against and then consider whether or not you can beat the trend.

Hottest Real Estate Markets - How They Work

During the hottest real estate markets, the inventory of attractive listings is low. Buyers are aggressively going after properties, sometimes resulting in bidding wars.

Since they know how quickly properties sell, buyers are usually quick to make offers when they see something they like. Also, their first offers are often quite good ones, since they are reluctant to see negotiations drawn out over a long period of time.

This all adds up to good news for the home seller, and yet some potential sellers/vendors are still reluctant to sell their home in a hot market.

Their logic is "Why sell in a hot market, when it's just going to cost me more wherever I'm going?"

In many cases, the simple answer to that question, is...it's simply not true.

First of all, if you're downgrading, a hot market is definitely to your advantage. The dollar gap between what you've received for your existing home, and what you'll get for your downscaled version is probably at its optimum, leaving you with the potential of more money left over in your pocket.

However, even if you're upgrading, a hot market can often be to your advantage.

That's because most people will still have to carry a mortgage on that next home. The true measure of what a home costs you should be judged not only by its purchase price, but also by its actual carrying costs.

A major factor in a hot housing market is the fact that mortgage rates tend to be lower. This means that the low interest applied against your mortgage amount may very well turn out to be a much lower figure than you might pay for a lower priced home if you wait until mortgage rates start to climb.

This affordability calculation is something a real estate agent or a mortgage broker can help you with. You may find that you can move up to a better home more affordably. This is especially true if you buy first, and then sell after prices have continued to climb.

There can be a definite advantage to playing in some of the hottest real estate markets in your area, if you have an experienced pro working for you.

If, on the other hand, you were caught up in the credit crunch and are now over financed in your present home, a short sale may be your only alternative.