Todd and Oana talk about timing the real estate market. Deciding whether to buy a house now or wait has always been something people have asked since there are high transaction costs when purchasing a home. It turns out its very difficult to time the housing market, and even if you do time it well, sometimes waiting to buy a house costs more money in the long run than just purchasing now.
Home prices have gone up 24% in the last year in the US, and In some markets like Idaho, they have gone up almost 50%. There has only been one time when purchasing a home would have been better waiting, and that was in 2005 when the real estate market was overbought and it collapsed crashing home values to less than 50% of market values by 2009. This was a one-time black swan even in the real estate.
There are a lot of opinions about whether 2021 is a good year to buy a house. There were some people that said the market would crash in the beginning of 2021, and it caused people to not buy a house. But then the real estate market took off, and people that didn’t buy are either forced to buy at a higher price or wait until 2022 or later and hope that the real estate market cools off.
Some people will always say the real estate market is overpriced and its not a good time to buy. Its generally a bad strategy to try and time the real estate market and if you want to buy a house or invest in real estate its better to buy now than wait.
If you have questions about buying or selling in Las Vegas please contact Oana directly at 702-285-4207 or email at firstname.lastname@example.org