If ever there was a time in my life when I wished I could be psychic, this moment would make my top 3 list! Every day, I have people asking me, “When is the market going to cool off?” Or, “Will the market crash?” The truth is, economists and people much smarter than most of us can evaluate, make projections and take cues from past market norms, but they’ll all stop short of having a crystal ball.
While we should be attentive to inflation, the economy and future projections when evaluating whether now is the right time for you to buy or sell real estate, I do not believe we should stress and worry over things that have not happened yet or things we don’t have control over.
This market does seem ripe to “shift” in some way, as we’ve seen a rapid increase in local property values, crazy low rates shifting back to normal range and inflation woven into nearly every sentence in the news these days. It’s easy for those following every single news broadcast to become stressed or worried about the future of our economy.
With all that in mind, remember that the biggest factor in deciding whether to buy or sell really should depend on your “why”. If you’re moving only to make money on the sale of your home and take advantage of higher-than-normal sales prices in our area, you’ll want to consider if all that profit will simply roll into the purchase price of the home you’ll turn around and buy in this competitive market. Markets are reciprocal, meaning you aren’t likely to cash out massive profit in the sale of your home and then turn around and buy a house on the cheap.
It’s my experience that most people move based on need and not just to make the profit. The need for more or differently allocated space, job transfer, growing family, etc. are typical initial drivers in the decision to move. Then the market conditions are a factor for how they approach pricing and timing to carry out their goals in the current market.
If you’re watching the news in disbelief and stressed out over the “what if” of it all, ask yourself if it’s likely to negatively affect your personal situation. Find peace in the knowledge that homes sold in the 80’swhen rates were double digits. They sold in 2008, in the era of nosediving prices and foreclosures, and we will continue to sell real estate in whatever market conditions lie ahead. I have confidence that everything eventually settles into a “new normal”, and we all adjust. Yes, there are pinch points along the way while things adjust to that “new normal”, but it’s like selling a stock. It’s only worth what it’s worth when you cash it out!
I’m always happy to answer questions specific to your personal situation, as every circumstance varies from person to person.
