Greetings,
Timing in real estate can make a difference as to whether one makes a profit or realizes a loss. Just as in many other types of markets, there are trends and ups and downs. Lots of people and lot of AI exists that talks about the subject. So, what makes up “good” timing?
The short answer is that you have to have enough information. You have to “know before you go.” Everyone that owns real estate owns an asset that is affected by various factors – such as (1) its surrounding area, (2) the demand (or lack of demand) of that product type (e.g. condos) and (3) the supply (or lack of supply) of that product type.
Let’s take condos. In our case, having a growing and eventually vibrant downtown serves us by directly improving the value of our real estate assets. There is some real traction occurring in this vein. There are existing properties going through some very real and very impressive renovations, along with some new builds started that are disruptive but will end up improving the surrounding area. There are not a lot of condo product (supply) on the market. There are some sales but it’s after a long lull in that market (demand). This is not similar to single-family homes, as that market has definitely taken an uptick in both supply and demand. The condo market will heat up again as well.
In commercial real estate there is a demand for offices and for industrial sites, and there is a lack of supply of both in many areas that people want to be in. That goes back to the point above regarding the surrounding area, as many want to be closer to a downtown. It has been challenging to meet all the requests I have for commercial properties. We do eventually find what a client needs, it just takes longer than usual due to the lack of supply. Patience is key.
The future looks very interesting as change is ongoing, and I believe it’s all for the better. Contact me with any comments or questions.
Best Regards,
Brian Andrus