One of the questions we get asked a lot is now a good time to buy? Buyers want to buy but they don’t want to overpay for property. Buyers and sellers have one thing in common; they want to time the market and buy or sell at the best time. Timing the market is not only rare, but also not practical.
Is Now a Good Time to Buy
If I asked you if you knew what you know today, would you go back and buy all the property you could back in 2006? I asked this question recently to a group of people, and every one of them said yes, emphatically. Why would someone buy at the top of the market in 2006 knowing full well home prices would go down in the future? National home prices were 21% above the trend line.
The reality is home prices can move lower over the short term, but over the long term they rise at about 4% annually over time. We never know for sure which years will rise or fall more than others, but we have history that tells us what it’s done over time.
Is Timing the Market a Good Idea?
If you can’t accurately predict short-term prices, why do so many try to time the market? When people attempt to time the market, they hold off making purchasing decisions. One thing we know from millionaires who built their wealth through accumulating real estate is they wish they would have bought sooner and more often. Millionaires rarely regret buying at the wrong time. They regret not buying more. I’ve asked wealthy investors what their number one regret is, and many said selling a property they should have kept.
Stocks Versus Real Estate
Many wealthy investors prefer to buy real estate and hold versus stocks for several reasons. Stocks have inside information that the Ceo or the company may possess, but the public may not. Real estate tends to be more transparent, meaning virtually all the people know about economic conditions in the market. If you study a local market, you can get a general feel if the market is growing and what factors are influencing real estate demand and prices.
Some real estate can be rented out when the owner is not using it. This is not true with most stock opportunities. And no matter what happens to the value of real estate, you can usually move in and live there until values change. You cannot move into a stock.
Back to the question
This brings back the question, is now a good time to buy real estate? The answer is it’s almost always a good time to buy real estate. The real question is, is now a good time to sell? Most wealthy investors say in hindsight, don’t sell. When we look at the chart, we have the benefit of hindsight which tells us to buy anytime you can. If you don’t buy it now, will you buy it next year? And the truth is, if you bought something every single year no matter the market direction, you’d be better off.
We understand everyone cannot buy every single year. The moral of the story is, people who can only afford to buy one are hurt the most when they don’t act, because money matters more to them and they don’t want to make a mistake by overpaying. If millionaires regret not buying more, you should regret not buying one. The path to wealth starts with one, and it starts no matter the market. Just begin!
If you’re looking to buy or sell, Always Call the Ellis Team at Keller Williams Realty 239-489-4042 We can help you evaluate your options and make the best decisions of your opportunities.
Good luck, and Happy House Hunting!