Everyone, including myself has suspicions about the housing market and the so called bubble. “Is now the time to buy?” you ask. Or, “Maybe I should sell while the market is still decent?”
Similar to the stock market, the real estate market is cyclical. In other words, it ebbs and flows. There are seasons of highs and lows. However, historically real estate has only risen in value over time. While there are bumps along the way, the graph steadily points upward. Those that get hurt are the ones that are forced to move when the market is on a decline, or need to buy when prices are on the rise. Also selling is detrimental when forces to move out of an appreciating market into a stable or declining one. For instance, we have many friends that have taken jobs out of California and are forced to sell. Of course I’ve always said, “Hold on to your property here or you will hard-pressed to ever return.” And, “You will be saying a year from now, ‘I wish we never sold our home!’” This is all based on the fact that the California housing market has been and will be the most appreciable of any place in the country!
Here’s another way to look at the above questions. We had a neighbor growing up that sold his house in a depressed market. My dad said, “Wow, you’re really going to take a hit selling at this time!” The neighbor responded, “Yes and no. I will also be buying in a depressed market and buying for a lower price.” The key is that you continue to own property. It’s not whether the market is up or down, it’s whether you are in it or not. I could go on and on….
Bottom line, statistically housing prices have doubled every 10 years in the United States. In California, it’s been more like every 6-7 years, and for some recently, more like every 2-3 years. I just sold a home where the owner bought it for $240K, two to three years ago. It just sold in one week for $485K. Do the math! Who doesn’t like that kind of investment.
Email me now to brainstorm how you can own your own home or income property.