I wish I had a dime for every time I hear this phrase in reference to buying now and reaping the financial rewards of selling in 4 or 5 years.
In the Midwest, the most popular catch phrase used to be, "someone from California will think this is a steal." But a depressed national real estate market made that phrase obsolete.
Who knows, in 4 or 5 years it might come back.
I think until people become better at math and have a better understanding of finance and economics, there will always be those that are counting their chickens (and spending them) before they hatch!
Everyone is talking about timing the market. What they don't talk about is knowing when the market has bottomed out. That knowledge usually comes about 6 months after it has already happened. Those who try to time the market usally end up with the junk. Smart buyers do the best they can in favorable markets and then hold until the market shifts. The time is now.
During the boom years in Arizona (2004 and 2005), I had investors from California calling me to buy properties sight unseen. When I told them that the properties wouldn't cash flow, they would say, "I don't care, I just plan on flipping them."
The fact that they didn't cash flow (especially how far away they were from cash flowing) was a great sign that the game of musical chairs was going to come to a very painful end.
Fast forward to today... properties in many areas of my market ARE cash flowing. The math works. And whether you are talking about stocks, or real estate, or any other investment class, it is the math that gives you the sign that the market is searching for a reason to turn.
Billi, Investors in California are buying now because Californians think the prices in California are a steal!
The price adjustment has been made in our market in Virginia. We're now seeing homebuyers prefer new homes over some of the short sales on the market. Builders are aggressively pricing their homes and offering a great value. Good luck in your market!
Mark
That is a gorgeous home. What is the asking price for something like that in your market?
Up here I have clients who would say that about Toronto or British Columbia. I'm curious about the price of that home too.
Billi...People used to say that around here too. Especially when I would list their house knowing it was higher than what the market would bear. Thinking someone from California would move this direction and pay to much for a house here because it was such a good deal compared to what they could buy for back home. I think those days are long gone and I'm not sure when they'll be back again.
I used to hear that a lot also. When you think about how small the houses are in California, when compared to the price, homes in the Midwest and Texas did appear to be a great bargain.
I hope you have a nice weekend.
Comments(9)