If you have been paying attention to the housing market recently you might be a little confused. Is it a buyers market, or is it a sellers market? For sure, the past couple of years have been a sellers market. We have seen houses flying off the books and prices steadily rising. So much so that some people have begun to speculate that we were once again approaching bubble territory.
What Is Happening With The Housing Market?
https://heightstitle.com/wp-content/uploads/2018/11/buyers-market-or-sellers-market.jpgBut then, over the past month, everything seems to have changed. In many places, prices are beginning to drop. Sales have stagnated, and many realtors have notice less showings.
One Real Estate Agent I know proclaimed “Within a week it went from a sellers market to a buyers market!” This is a striking development. As recently as August of this year most experts agreed that we wouldn’t see a buyers market until 2020.
Whether this is a shift in the market, a correction, or a hiccup, the question really is “does it matter?”.
It Depends on Why
If you are currently renting, then all the money you spend on rent is going out the window. When you buy a home your monthly payments become equity. Even if the house looses some value, you will still have some equity in most cases.
If you are interested in flipping houses, then it is important to pay attention to the market. You could easily find your self buying a home, putting 40 grand into it, and then not being able to recoup that investment if the market drops.
However, if you are looking for a home, the important thing is to find some thing with the mortgage payment you are comfortable with. In the long run home prices always increase.
I lived in Los Angeles for 20 years. When I moved to Florida I realized that I have paid over $300,000 in rent while living in the same apartments. Even though I moved in the middle of the market collapse, if I had bought a home when I first moved to Los Angeles I still would not have lost $300,000 when the bubble burst.
So even if you think buying a home could be a risk, renting means you will be throwing the money away.
It is all about Perspective
https://heightstitle.com/wp-content/uploads/2018/11/us-home-prices.jpgA wise man once told me that we make thousands of choices every day. Some are as simple as what to wear, or what to have for lunch. Others can be much more important, like what job to take, or when to buy a home.
The reality is, most of those choices aren’t going to be the best choice we could have made. But they are our choices and we must embrace them. Remember, not choosing is a choice as well (and that is usually the wrong choice.)
If you are buying a home, look for something that is that right size and right price for you.
If you are selling a home make sure you get enough to pay off the rest of your mortgage, and give you a good down payment for your next home. If you can’t do that, consider renting out your old home until prices rise (and you pay your mortgage down) enough that you can do that.
Don’t worry about if it is the best price. Just worry about if it is a good price for you.
When you do decide to buy or sell a home in Southwest Florida, let Heights Title help you with your title research and title insurance.