A well known secret of the rich! Wealthy Americans have prospered from this idea for years! You don't make money when you sell real estate...you make it when you buy real estate! Why does Mr. "Mad Money" stock guru Jim Kramer always advise his viewers to "wait for the market to pull back and buy on the dips"? Because that's how the gains are made and it's no different in real estate!
So let's look at this...if real estate prices go up and down...we also know that each price range of home is moving up and down in parallel...at the same time with the other price ranges with very few exceptions. Because this is true, percentage wise the reduction on a larger number is always a larger number. So when you sell a home and move up into a higher priced market you will always incrementally benefit from the markets pull back! It's just math. Now add in the lowest interest rates in history and a home supply we haven't seen in 25 years (nationally) this makes for some great home shopping conditions!
Warning: If interest rates start to rise, this window of opportunity will diminish.
Great blog for a/r community, have a wonderful week.
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