At this point, nearly everyone is aware of how intense the local real estate market has been of late. Low inventory, bargain-basement mortgage rates, and a raft of pandemic-spawned changes in buyer preferences have created a unique set of market conditions. One that has favored homeowners selling a home in is the boom in real estate values (and selling prices). That can lead many otherwise well-motivated buyers to hesitate, largely prompted by the nagging thought, “Should I wait for the market to crash?”
One consoling point of view was provided by the seasoned entrepreneur, real estate investor, and acclaimed business author Keith Cunningham. In his book, The Road Less Stupid, he spells out a set of truisms that can lead to peace of mind for would-be homebuyers. The first, “Just because prices have gone up the last several years doesn’t mean they can’t go down…” simply acknowledges the universal truth about free markets. Nobody would argue about that one—in fact, it’s the reality that can immobilize buyers who have found homes that are otherwise perfect fits.
The second and third truisms combine to provide a long-term vision that offsets that kind of counterproductive market anxiety:
“Catching a big wave is not the same as being a good swimmer” addresses the discomfort of those who wish they had bought last year (or last month). That can paralyze any action at all—a counterproductive situation if ever there was one. It’s another way of lauding those who acknowledge the futility of market timing.
“True wealth is built slowly” is a concise way to ease the concern that the market might retreat after they buy. It might. But throughout history—and as we all have again witnessed after the most recent real estate downturn—homeowners who ignore the ups and downs tend to prosper in the long run.
Buying and selling a home in remains a very personal decision with far-reaching effects on the quality of life of the homeowners and their families. The right time to consider buying a home is largely when personal circumstances and finances dictate that now is the time.