Should I wait to buy until the market cools down?
If you're thinking about buying (or selling) in the current market, here are some things to keep in mind. Since 1975, with few exceptions, the overall trend in real estate values has been UP!
Home prices are up 17% in just the last 12 months.
Furthermore, homeowners have gained over 9.9 trillion dollars in equity, and the average homeowner has secured $185,000 in home equity.
According to Rick Sharga, the head of data at research firm ATTOM, “It’s likely that equity will continue to grow through the rest of 2022.”
The market has been good for sellers.
For buyers... well that's a different story.
You might not be surprised to learn that in a recent Gallup poll, only 30% of buyers said it was a good time to buy.
The question you might be asking yourself is, "Should I wait until the market cools down to buy a home?"
Let's look at the data:
Over the last 47 years, home prices have appreciated 168 out of the 188 financial quarters.
Outside of the subprime crisis, there have only been 6 quarters where home values depreciated. And in most cases, it was less than ~1-2%.
We know that we're going to sound like a typical Realtor, but there really is never a bad time to buy a home with one caveat.
You have to think long-term.
The old adage is true - forget timing the market, focus on time in the market.