Are you missing out on a once in a lifetime opportunity to Ride the Real Estate Opportunity?
Will you Ride this Real Estate Wave or wish you had?
Experienced Real Estate agents from all over are saying they have never seen a market like this. People are asking if this is a bubble that is going to burst soon. Investors are buying up properties like there's no tomorrow. What do Real Estate Agents and Investors know that the common people don't know?
Supply, Demand & Opportunity have caused a perfect storm in our current Real Estate Market.
Think about it. Here are some things we do know:
- The recession wasn't very long ago and we kept hearing there would be pent up demand. And there has been. Millennial's didn't purchase as early in their lives as their predecessors. Gen Z who came after the Millennial generation, started purchasing right away. (Demand)
- Although people who lost their homes started getting back on their feet quickly, not everyone jumped back into a purchase right away. The sting of the recession had some people holding off. Now they're buying. (Demand)
- Builder starts slowed down. Builders and banks reentered the market with caution. Now some builders are saying they may be as far as 10 years behind. (Supply)
- Interest Rates have been at an all time low. People want to take advantage of these rates. Some are putting less down because they can invest their funds elsewhere. (Opportunity)
- Covid hit making the price of lumber, software chips, and other housing supplies surge. (Supply)
- The pandemic has also made people re-evaluate where they want to live. (Demand)
- People are working from home more than ever and can live where they want. (Opportunity)
- The economy has been strong and people have the funds to buy. (Opportunity)
People are asking critical questions. We don't have a crystal ball and can only go on history, statistics, what we're experiencing and common sense.
Are we in a housing bubble? Most experts are saying no. Supply and Demand are too strong.
Will the market slow down? Probably at some point but that doesn't mean home prices will decline. They may just stop increasing so rapidly or level off.
Is this a good time to buy? With low interest rates and strong job growth people have never had more buying power. Because the interest rates are so low, you'll be putting more of your payment towards equity than interest.
Should I wait until the market slows down to buy a home? Some people feel now is a risky time to buy a home. What they don't understand is one thing that may cause the market to slow down in higher interest rates. When that happens, buyers will have less buying power and less of their payment will go towards their equity. Now is a great time to build equity in a home.
Is it better to own than rent in this market? Statics show you build more wealth if you own a home. If you have job security and can qualify, it is very likely you'd be better off owning rather than renting. Talk to a Real Estate professional to see if it is a better situation for you. Instead of renting and paying your landlord's mortgage, you pay your own mortgage. The house payment (mortgage) you pay becomes equity that allows you to save for a better tomorrow.
How do I protect myself and my assets if the Real Estate market drops? If there is one lesson we've learned from the recession it is how to plan. There's never a fool proof way to protect your investments. You plan the best you can. Buy a house you can comfortably live in through any Real Estate wave. Because, there are always waves. If you have to move during a down time, consider whether it can be rented. Always have 6-12 months or more reserves saved just in case.
What do I do if I'm upside down in my mortgage or behind on my mortgage? If at anytime you find yourself in a difficult situation. Don't wait and "Do Nothing"! Many Real Estate agents work with people upside down. We have resources such as working with the lender or bank to do a short sale or selling to an investor. In this market, you may even walk away with equity. Don't wait until your house is taken from you.
You have the power to choose to ride the Wave or sit it out. Just make sure you have all the facts to determine if you're missing out on an investment opportunity. There may be other factors to consider. As always, I recommend you speak to your local Real Estate Expert before making a decision.