Why it pays to move in a down market?

February 25, 2019

Why it pays to move in a down market?

We often hear of sellers or potential sellers wanting to wait for markets to recover, or for prices to hit some pre-determined number desired or required before they move.

We have been hearing that on and off for over ten years since the GFC of 2008. Imaging putting your life on hold waiting for a market to recover?(For ten or more years).

FACTS: no one ever knows exactly when that will or won’t happen. It may be as is for a few more years to come.

OR WORSE- Who knows?

Did you know that if you are trading up, you are better off moving now rather than waiting for a market to recover? That is a fact. Let me show you why! 

  1. Your home is worth now $1M or 10% less than earlier on. (Say it was circa $1.1M before) = $100,000 less.
  2. The one you want to buy is now $1.5M or 10% less than earlier on (say it was $1.65M before) = $150,000 less
  3. The gap was $1,650,000 less $1,100,000M which is $550,000.
  4. The gap is now $1,500,000 less $1,000,000 which is $500,000.

You are better off in this example by $50,000 selling in a down market if trading up. (10% of the difference).

Of course, this is purely a mathematical example, and there are many benefits for moving that extend way past just financial ones, that is acknowledged.

So to discuss further how you can take advantage of the current market conditions, please call me or email me and I will be delighted to meet up.


The argument that if you buy and sell in the same market holds true, as theoretically if you buy high and sell high, or vice versa, buy low and sell low the effect of the market is negated (Irrelevant).

As always, please feel free to give me a call if I can assist with any real estate matters. Thank you.