Have you ever had the headline of an article catch your eye, and suddenly you are questioning your life choices? Maybe you had an Italian sub for lunch, and now you’re worried that salami causes colon cancer, or maybe you had planned to go swimming this weekend, but now you know that lake-water can harbor brain-eating amoebas. Or perhaps you were just pre-approved for a home loan, and you see an article that says the housing market is about to crash.
I’m not here to talk about the state of the market: That’s an entirely different blog post! I want to talk about why you need to center your own needs and goals when you make decisions about buying and selling.
If you are a real estate investor by trade, the state of the market is paramount to your business. Just like a stock broker, you may have ways to make money in any market, but there are times when it may not make sense to buy or sell.
Reality check: Most of us are NOT real estate investors.
Now, I will be the first one to stress that real estate is an excellent investment. In fact, I believe that a primary residence is the absolute best investment you can make. But for most people it is a LONG-TERM investment, and should be viewed as such. Unless you are planning on buying and selling homes every couple of years, you are going to have factors to consider in your own life that are independent of how the housing market is currently functioning.
When is the best time to buy a house? The best time to buy is when you are ready to. Are you financially capable? Do you have a stable job, and see yourself staying in the area for a while? Does homeownership align with your other life goals, whatever they may be? Then it’s a good time.
But what about the rates?:
Mortgage rates could go down after you buy, or they could go up. If they go down, you can refinance later and lower your monthly payment, freeing up disposable income. If they go up after you buy, you’ll be glad you bought when you did. If you can find a home that meets your needs for a monthly payment that you can afford, focus on that and stop worrying about the rates!
What if the prices go down?:
If you’re a potential first-time buyer, and you just really want to get a good deal, PLEASE stop waiting for the prices to go down! How much rent are you going to give your landlord in the time that you are waiting, and how much will prices need to drop for you to recoup that loss? If prices go down, but rates go up, you’re just treading water on the monthly payment anyway. On average, home values double every 12 years. If you are not planning to sell in the first couple of years, you aren’t doing yourself any favors by waiting. If you think you will need to sell in the first couple of years, now THAT’S a real-life factor that is worth considering.
So what about selling? When is a good time to sell my home?
Once again, most of us are NOT real estate investors. Is it feasible for you to hold onto a property until it is a “good time” to sell? If so
, then do it. If not, then sell when doing so makes sense for you. Do you have to move for career reasons? Are you going through a divorce? Are you having children, and need more bedrooms? Have you become disabled, and need housing without stairs? Those are good reasons to sell. The good news is that the vast majority of sellers make money when they sell: In 2020 only 2.75% of homeowners had negative equity, and the average profit on a home sale in the US was $68,843. Since 2020, those numbers have been even better.
If you are considering buying or selling a home, and you want to know if it’s a good time, reach out to trusted professionals who can help you determine if it’s a good time for YOU. And STOP worrying about over-dramatized, under-researched click-bait articles!
-Heather Theiss
Realtor, Urban Nest Realty
Licensed in OR & WA
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