Of all the questions I get, the title of this blog is the most frequent. Shakespeare would be proud. Here we go. Are prices going lower? Should I wait for a better entry point? Do you think interest rates are going to rise soon? My answers to all three…….If I knew that, I would be sitting on a beach somewhere in Tahiti having some form of libation. The bottom line gentle reader is this……If you want to buy just get close to the bottom and if you want to sell, just get close to the top. Once you accept the fact that nobody can time ANY market, your decision will become much easier.
Are we near a bottom in housing?…………..I think we are close. Are interest rates close to a bottom?……….I think so. Remember, real estate is a much slower moving market than the stock market. Recalibrate your thinking. My recommendation to any potential buyer regarding the above 3 questions I initially laid out is this…….If you think we have another 10% to go on the downside, make an offer at that level on the home you would like to buy. If you do there are a few knowns you can bank on. First, you can lock that low interest rate in and not have that risk on the table. Two, if prices go lower you are insulated for 10%. Three, you can cherry pick the homes now as when things pick up, there will be more buyer competition. Fourth, you can immediately start enjoying your home in paradise. Fifth, load up the boat, go fishing or diving and have some fun. Kinda got the picture?
My late father had a saying, “He who hesitates is lost”. Maybe it is time to stop watching things happen and perhaps time to make something happen.
Best to All…….Paul