Are You Looking Forward or Backwards, Depends On Whether Your A Buyer Or A Seller

Sellers are remembering what prices used to be, last year, 3 years ago, 5 years ago.

Buyers are thinking about what prices are going to be, next year, 3 years from now and 5 years from now.

Think about it, the emotional attachment to price, depends on which direction you're looking, and from which position you stand!

Let's take this same thought and just flip it!

In 2003 to about 2008, sellers were thinking about what prices were going to be next year, 3 years from then and 5 years from then.

In 2003 to about 2008, buyers were thinking about what prices used to be, the year before last, 3 years before and 5 years before.

Right now I'm dealing with the current situation on vision and emotional attachment to price from both buyers and sellers in my market.  I have to admit, I was somewhat star struck by the brief 5 year period mentioned above. 

I was amazed that people could make a purchase and then sell and buy up every 2 years, at least 3 times during that period.  Some homes were increasing in sales price 20% in just one year, in Billings Montana.  I know there were areas of the country where this increase was much higher, but we never had anything like a 50% increase in our market.  We also haven't had any price decreases like many areas of the country either, when you go up too fast, you fall pretty hard!

I think we'll be a stronger country and a healthier economy if we work to "own a home" verses "gamble on a home".  I never would have thought of selling a home in just 2 years, and I only did that once back in the 80's when I moved to a different town in Montana.  Ever since then, we've always managed to purchase, live and improve and pay down the mortgage, about every 4 years.  (I should mention that home prices were going up on average between 4% to 8% a year for most of my home ownership) 

This pace was halted when we built our last and final resting place, the place where we live now, we've been here for 10 years!  There's a good chance we could pay this place off, completely, before we retire!  Something just feels good about that!  Feels like security, safety, good economic sense!  I won't have to worry about how well my investments do if I don't need to spend so much when I retire.  Just a little less stress I think.

Now, what to do about the kids?