So you want to know how to determine the best time to sell or buy a house? All buyers and sellers enter the market at the best time possible, so how do you time the real estate market? That’s like the million-dollar question in real estate. Is there a tool or key that will tell you when the market is peaking or bottoming out? Great question, let’s get into it…
Equity Over The Past 32 Years
Check this out! Home equity across the country is up over 290% over the past 32 years! Keep in mind, this is an average so some areas were much higher and some lower.
In Oregon, where I live, home equity is up over 500% in the same 32-year timeframe. That’s more equity over that time frame on average than our neighbors to the north in Washington, and our neighbors to the south in California!
Do you see how owning a home builds tremendous wealth over time? Not a bad return on your investment… and this even includes the data from the crash recession market we all remember so well from 2008/2009, so no fudging numbers or anything.
Real Estate Market Peaks And Valleys
So how do you time the real estate market? What’s the key… or is there a key? What is the missing ingredient that people need? Well, the easy answer is you can’t.
Timing the real estate market, or any market is an impossible thing to do. Even the experts can’t do it. The real estate market peaks and valleys are only made known to us when we look back in time. If anyone tells you something different, don’t listen. They’re either way too full of themselves or they’re pulling your leg.
Homeownership Always Wins
When we look back at the last real estate market crash, and I was there in 2008… there was no possible way anyone could know when the housing market was actually peaking out. Sure we knew we were in a crazy boom market but nobody knew exactly how far over or under the curve we were. That market actually peaked in early 2006 but we didn’t know that until much later.
Likewise, there’s no way of really knowing that the “low of the low” of the real estate market wasn’t until the middle of 2011. That is when the market bottomed out. Although we didn’t know of this at the time, we can see it all clearly now by simply looking back at the market data.
Only with hindsight and information do we really know when either the peak or the valley really is. So timing the real estate market really isn’t the key… it’s not the most important thing. According to NAR, the net worth of homeowners is 40 times that of a renter.
Timing is important but not as important as time itself… that’s where equity is built.
Troy
The key is to be in the market because we know what happens over time. It is a fact that homes appreciate over time, even though a crazy recession like the one I mentioned above… over time, homeownership wins every single time. In fact, the median net worth of homeowners is 40 times more than renters!
It’s really simple information to find. Just jump on Google:), but it’s obvious that homes are more expensive today than they were 5 or 10, 20, or 32 years ago. So history shows that over time, home prices go up, and if you’re a homeowner, you win. That’s just the nature of how real estate works and homeownership works.
So if you’re trying to time the real estate market before buying, or maybe timing the market before selling, odds are, unless you have a crystal ball that works… you’re going to miss it. You’re going to look back and say, “Hey, there was the peak,” or, “Hey, was that the valley?” You’re just not going to be able to do it. By the time you figure it out, the market will already be on the way up or down the other side.
A Better Plan
Instead of wasting equity-building time trying to figure out how to time the real estate market, let’s get you into the market. Let me help you become a homeowner if you’re not already one.
And, if you are a homeowner and you’re thinking about maybe upsizing or downsizing or maybe even relocating, don’t try timing the real estate market. Let’s talk about how we can get you on the market so you can make the move you desire to make. It’s still an incredibly good real estate market for sellers. Got questions?
