Although traditionally people believe that the key to real estate is “location, location, location,” I would argue that it’s actually “timing, timing, timing.” Whether you are a first time buyer, an investor, or a student of the local real estate market, you can gain some serious wealth building a real estate portfolio if you time the market right.
Conceptually, it’s simple: buy low and sell high. In practice, it’s not quite that easy. Often
because this is your home, and other circumstances factor into your ability to sell/move when the timing is right, and more often, because we don’t see the telltale market signs that things are changing and it’s time to go. Until those signs – obvious now – are in the rear view mirror.
So, let me be clear: NOW IS A GREAT TIME TO BUY A HOUSE. Interest rates remain at historic lows, and that is not going to last forever. Market activity has slowly and steadily been picking up for the past 12 months, and inventory levels are flirting with a pendulum swing to a sellers’ market. It seems that all of a sudden, well positioned listings are inviting multiple offers, and flying off the market within days and weeks of hitting MLS.
The result of that is going to be an increase in prices, and a tightening of sellers’ willingness to negotiate favorable terms (paying for buyers closing costs, warranties, and other concessions that we saw frequently when the buyer had market leverage). We have already watched the ratio of sold price to list price move from 97% to 98% in less than 60 days – that single market metric cost buyers over $2,000 on an average priced property.
So, don’t miss out on what is likely to be the best time to buy a house for quite some time. Where should you start? Hire a great REALTOR. I would be happy to recommend one – just tell me a little bit about what you’re looking for (my email address is liz@lizmoore.com), and I would be happy to connect you with an agent who would love to help you.
You can also download our free Home Buyer’s Handbook, which is full of guidance and tips to help make your home purchase experience a great one.
