Be like Warren Buffett, not like Cynthia and Bob

By: Lindsay Smith

Be like Warren Buffett, not like Cynthia and Bob

Tags:

real estate, buyselllovedurham, oshawa real estate, durham region, market trends, real estate pricing, neighbourhood, opportunities, oshawa, whitby, ajax, clarington, broker, expert, advisor, trust

Look over there, way over there. There is a couple, let’s call them Cynthia and Bob and they are sitting on the bleachers sipping lattes. What is important about this couple? They are Buyers, sitting on the sidelines waiting.

Waiting for, well in the words of Dr. Suess…
“Waiting for the fish to bite, or waiting for the wind to fly a kite,
Or waiting around for Friday night, or waiting, perhaps, for their Uncle Jake,
Or a pot to boil, or a better break, or a string or pearls of a pair of pants,
Or a wig with curls, or another chance, everyone is just waiting.”
 
Are Cynthia and Bob waiting for the mortgage rates to drop to what they have been over the past few years, or the values to continue to fall, just waiting to see what might happen? Then you have Crystal and Tim. They are not good at waiting, they are “doers.” As the market started to shift, they made their home look beautiful, we placed it on the market and it sold at a great price. Why sell now? Well, they became Buyers and unlike Cynthia and Bob, they bought a home at a fantastic, affordable price and are now decorating and planning the plants that will adorn the front door as we move into fall.

Trying to time the market, meaning to buy a home when the market hits bottom is akin to trying to catch a falling knife by the blade. It sounds good in theory, but the result rarely works out. Here is why Cynthia and Bob should get off the bleachers and start house hunting.

Location Date Homes for Sale Homes Sold Average Price
Oshawa August 29, 2022  187 138 $859,000
  August. 2021 89 191 $862,000
Whitby August 29, 2022 119 82 $1,074,000
  August 2021 42 118 $1,101,000
Clarington August 29, 2022 150 102 $1,004,000
  August 2021 62 140 $992,000

 
When you look at the above-detached homes, the big difference is that a year ago, our community had very few homes for sale, and most were having bidding contests with homes selling far over the asking price, if a Buyer was lucky enough to win the contest. Oshawa has 100 more homes for a Buyer to choose from and with this level of increased inventory, Buyers now can have the protection of home inspection and financing clauses. This is a perfect time to buy. Have we hit bottom? Or has the bottom come and gone? At the end of July, Oshawa prices were $45,000 less than today and Clarington prices have increased by about $84,000.  When you read “between the lines,” and see that prices start increasing in the dead of summer, it gives some clarity that as the economy cycles into the fall market, the prices we have seen this summer will be a memory and Buyers will pay more for the homes they buy.

Buyers have an opportunity currently to secure homes at prices that over the next few years might seem like a bargain. Again, to quote Warren Buffett, “it’s not about timing the market, it’s about time “in” the market. Something else you notice about Buffett and how he invests is that he buys when others are holding back.

Currently, Cynthia and Bob are holding back. Be like Buffett, not Cynthia and Bob.

Here is an article on how we helped Crystal and Tim take advantage of today’s market.

If you are interested in Buying a home or Selling for the best value in today’s market, I can be reached at lindsay@buyselllove.ca

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