One of my esteemed colleagues here so aptly points out that we do not have a crystal ball! :) While we might have seen that the real estate market was headed for a level off period, there was no way any of us predicted it would be this long and this much of an unprecedented downturn!
Take some time to think about your timing, interview a couple of agents in person to see who you trust. That agent can keep you on an auto contact list to let you know how the market is going even if you decide you don't want to do anything for a year or two.
Bite the bullet now. You said you need a bigger place. What ever you loose on the sale of your place you will make up on a purchase. There are so many great deals out there on foreclosures and short sales. If you wait couple years you might be able to sell for little more maybe? No one knows for sure it might be longer than that. In this case you will pay more on a purchase of a new bigger place and at the end the result is the same. Except if you bight the bullet now you will get to you bigger place sooner, Good luck(:
If you are considering buying right now there are definitely deals to be had out there. Just to give you an example: a two bedroom property on Ontario was listed at 399,000 it sold almost two weeks ago for $342,000 and included parking. Parking in your neighborhood is about $30K so that is just under a 90K savings. If your are really looking at a 20K loss a 90K savings on your next property certainly makes up for that!
This is a tough decision to make, if I can be of any assistance please let me know.
Best of Luck!
Prices are falling and how much farther we dont know. One thing I can tell you, is they sure as heck are not going up any time soon. So what you can get for your condo today, is going to be a lot more than you will get 2 years from now. What you lose out on now, you will make up for when you buy.
If someone is telling you that prices will be up in 2 years, well you are being lied to. Bite the bullet now. Its a terrible feeling but 20k now sounds better than 40k 2 years from now.
Americorp Real Estate
Brokers Associate, e-PRO
It does seem that prices have bottomed out and appreciation historically is 1-5% above inflation not counting the 'bubble years' of 2000-2006ish.
If you can afford to rent it out and still buy, then perhaps that might work, but would you have a negative cash flow each month? Will you just lose equity when you sell or will you need to bring some $$ to the closing table? Can you afford to buy while maintaining your current condo. Lenders are very restirctive in qualifying a situation like yours. You might want to talk with a couple of them. My web site has some references.
Yes, it's a good time to buy,but this market will not change too quickly. It will be good to buy for the next few years, but the degree to which that is true depends on the neighborhood you are looking in, the price point you are at and the property type. Not everything is or will be equal.
If you can sell and get out from under a property in the current market by only having to eat a $20,000 loss, many sellers would jump at this opportunity.
The reality is that if you were in a situation to sell and then buy a replacement home you probably could plan on making up the $20,000 difference on what you could save on the new purchase. With only a $20,000 deficiency you may be able to better than a "wash."
2. Sell it and take a loss. Even with this there's no way to know how long it will take to sell. It's $20,000 less "plus" commissions, title fees, etc. Could be another $15,000.
3. Be safe and conservative and hold on to it for another year or 2 and see what happens.
Are you perhaps moving to the suburbs? How about Arlington Heights?