You Should Have Bought That House Last Year…
That’s what many unfortunate; would be homeowners are muttering under their breath, if they paid attention to the roughly 25% appreciation single-family homes garnered in our comparison of year over year numbers. So yes, if you didn’t pull the trigger on that million dollar listing you really liked, but thought was over priced, you just missed out on a $250,000 gain. WOW!!
Not only that, but now that same “overpriced” listing will now cost you $1,200,000. It’s a hard concept for people to understand that houses, to some extent are like stocks. It’s understandable. You’re dealing with a seller, not a corporation, so how can the price seem to be so fixed? Well…You wouldn’t dream of telling your stockbroker, “buy me some IBM or Apple stock, and lowball the offer.” No, it is what it is and the market sets the price. Homes are the same. They cost what the market will bear. Tight inventory, which we are experiencing now to the greatest degree we ever have, drives the prices up by simple supply and demand. Investments grow in large part due to scarcity. Homes for sale right now are scarce. Waiting to buy is truly a gamble and one that many hopeful buyers lost.
Don’t wait to buy real estate…buy real estate and wait. And those that waited, will now be fighting a two headed monster— a scarce inventory and rising interest rates.
Give us a call at Premier Funding Network if you have questions about mortgages and or the real estate market, we’re here to help. 714-283-9900.