Here’s what I tell buyers when they ask if it’s the right time to purchase.
We’ve been seeing home values rise for years now, and the question, “Is now a good time to buy?” comes up a lot. People are worried about a possible market shift or recession with the recent spike in home prices. Anybody that automatically answers “Yes!” to that question is not looking at your specific situation. The answer of whether it’s the right time to buy or not depends on you, the buyer.
When you’re thinking about buying, what’s your long-term plan? Throughout the last 100 years, home values have appreciated 4% per year on average. If you’re planning to buy and you know you’ll move in a few years, you might not be able to bank on selling at a high price. We don’t know when the market is going to correct or what may cause it to shift in the future. Something could happen, and all of a sudden your home’s value has decreased.
In the long term, home values will rise. So the question becomes: Are you willing to ride out the market? You’ll need to commit to living in the home long term in case the market takes a turn. When you look at real estate as a long-term play, the value will go up over time despite future shifts.
If you put 10% down on a $1 million home, you have $900,000 of leverage working for you. With a long-term holding strategy, it’s absolutely a great time to buy.
If you have any questions or want me to assess your situation, don’t hesitate to reach out via phone or email today. I look forward to hearing from you soon.
