Which is best? To buy first or sell First?
The million dollar question when it comes to real estate… which should I do first? Buy a new home, or sell my current one? There isn’t really any right or wrong answer to this question, but the solution can often hinge on where the real estate market is at. Is it a Buyers market or Sellers market? And, what exactly do both of those mean?
A Buyers market is one in which there are many properties available for sale, but fewer buyers. Simply stated, it boils down to a case of supply versus demand. When there is an abundance in the supply of houses, and a decrease in the demand for buyers, it is a Buyers market. Antithetically, it is a Sellers market when there are fewer properties for sale, and a greater number of buyers. It is during a Sellers Market that we will generally see more bidding wars over properties, resulting in a higher than List-price purchase price.
The city of Calgary is currently a Buyers Market. "Calgary's economy continues to struggle with unemployment, which rose again last month (September 2018) to over eight per cent. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand," said CREB® chief economist Ann-Marie Lurie.
Due to this, it is probably more reasonable to suggest that one should sell their house first before purchasing their next one. Because there is an abundance of properties on the market right now, the one who sells will likely have ample opportunity to find the home of their choice without too much difficulty.