Musical Chairs and the Housing Market

One of the biggest challenges for REALTORS® right now is convincing people to sell. Even if people want to move up, relocate or downsize, they are deeply concerned about finding another home – and rightly so. I liken the housing shortage to a game of musical chairs, except that there aren’t one or two too few chairs; there are only enough chairs for half the kids. Who’s going to give up their seat in that situation?

The housing crises in Canada and the US are taking a massive toll on our society. Good working-class people are becoming homeless. Young people are saddled with massive debt, and mental illness is on the rise leading to drug addiction, unnecessary loss of life, and increased crime in our communities. 
Additionally, it may start to drive housing prices up again, affecting inflation and forcing governments to keep interest rates higher, creating less stability in the economy.

As housing professionals, I think we need to take a more significant role in helping Canada move beyond this terrible crisis. We need to build hundreds of thousands of homes in the next few years, which means seeing housing differently. Different zoning, different building codes, and different attitudes. How can we, as the real estate industry and you as an individual, help? Stay tuned for more on this in the coming months but in the meantime, speak up against nimbyism and speak up for increased density for affordable housing.

“Life is like a musical chairs game, grab your chair or someone else will.“

– Vedawrites

How do you help the potential seller who wants to move but is afraid to give up their seat? There is always an inherent risk when someone needs to sell one house to buy another. Do they buy first, sell first, or buy conditionally? The amount of risk changes with the market and with the person’s unique situation. Helping your potential client understand their risk with each scenario will go a long way to helping them decide. 

There is another less common option that might be worth considering. 
Some of my clients have been helping people sell their homes conditionally on being able to purchase a new one. Why not?