Downturn Creates Opportunity For Upsizers

Falling property prices are creating an opportunity for homeowners who want to upgrade.

In many markets, higher-priced homes have fallen further than affordable properties. An owner may accept less when selling their home but secure a discount on the property they purchase.

The strategy works because the dollar saving on the upgrade can exceed the reduction on their sale. A 5% fall on an $800,000 home represents $40,000, while the same decline on a $1.4 million property equals $70,000.

Softer competition provides an advantage. Buyers have more time to conduct due diligence, negotiate conditions and avoid the aggressive bidding common during boom periods.

The approach is effective for owners selling and buying in the same market. Those selling without rebuying may prefer to wait, while anyone carrying bridging finance must consider holding costs and settlement timing.

Owners should base their decision on comparable sales rather than broad market averages. Premium properties have not declined equally, and high-quality homes can still attract strong competition.

For households with stable income, equity and a need for more space, a downturn can improve the trade-up equation. A softer market is not only about falling values; it can also change which properties are within reach.