A Time to Buy and a Time to Sell

I have been bombarded with questions regarding real estate in the recent months. Is it a good time to buy? Is it a good time to sell? A time to buy and a time to sell

I have been bombarded with questions regarding real estate in the recent months. Is it a good time to buy? Is it a good time to sell? Will rates go back up? Should I do a 15 or 30 year mortgage? All very good questions. Let me give my opinion if I may. The housing market is cyclical. It has peaks and valleys. We saw a big price increase in the early 2000’s and then the bottom fell out in 2008. Being a seller and buyer is also cyclical. It’s a good time to sell and a bad time to buy right now. People are getting more than asking price for their homes and people are paying 25-30% more than what they should on a home. For people who are considering buying a home in areas where there is huge demand, I suggest renting until the market levels out. It is my opinion that we will start seeing defaults on mortgages which will lower the housing prices. Why such a dramatic change currently? Demand is why we see prices increases. There are more people moving into the red states and not enough houses for them to buy. This isn’t rocket science. Increased demand and not enough product equals economics 101. If you are a seller, I think you may have another year or two at best before you see prices starting to drop. As they say, get while the getting is good. Buyers, don’t get pushed into a bad deal which is what I am seeing currently. Stick to what you can afford and stay within your budget.

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