Should I sell now or hope for prices to go up for forever?
As home prices rise and rise, more and more homeowners and potential buyers are reaching out, and inquiring about the status of the housing market in the next year or two.
Well, here are my two cents.
History always repeats itself, and we are due for a downturn. Maybe not nearly as drastic as ten years ago, but a downturn never the less. Most people would agree that we are closer to a peak than a bottom, and the next two trends to follow in the business cycle are the downturn, and then the bottom.
With that being said, in some markets, we have already reached the peak, while in other markets, prices are still climbing towards the very top of the bell curve. The question is when will the downturn arrive where you live?
Well, I would say today, tomorrow, or sometime in he next 18 months. So, if you’re looking to sell in the next 1-5 years, why wait? Now, you may ask if you should buy if we are nearing a peak, and if the equilibrium price is lower than current market values. The best answer that has come directly from clients is that if they are getting a loan, locking in a historically low interest rate is more important than getting a lower price on the house; meaning that a lower monthly payment is more important than fake equity that only shows up online, and one per year on your 1098 mortgage interest statement.
What about if you’re paying cash, you ask? Well, you will still want to sell now, and then possibly rent until you find a good deal! See? We can advise solely. Not always the head time to buy! Have your cake and eat it too!
Don’t wait for the media to notify you of a downturn in the housing market!
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