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Need to Buy or
Sell a Home!
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Should you Sell your Home before the
Housing Bubble Pops
By: Mark J. Donovan
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For the past several years housing prices have risen
dramatically. With interest rates continuously moving up, and more and more
people being priced out of the market, all signs point to an imminent housing
market correction. So should you sell your home now before the
price drop and the bubble pops, or
should you stick it out and see what happens? It really depends on your
individual situation. Let’s face it, we all need a place to live and the world
and United States population continues to grow.
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Any correction in the housing market will inevitably be short lived,
relatively speaking.
Historically it is
not uncommon to see house prices drop 10-20% during a correction cycle and for
these cycles to last several years. Inevitably, however, the housing market
recovers and prices continue to rise over the long run.
Before a homeowner
decides to sell out to beat the housing
market, he or she should first decide what
their 5 and 10 year plans are and what
their home needs will be.
If the plan is to
stay in the same community and that the
current home will meet their long term
needs, e.g. enough bedrooms for a growing
young family, then there should be no real
reason to sell out. Unless of course your
feeling lucky and want to gamble.
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However, if you sell out too
early you may find yourself priced out of a new home and stuck in an apartment
for much longer than you planned. As most financial investors will advise, it
is not wise to time the market. Instead invest on a regular basis that suits
your long term financial goals. Your home will probably be your biggest
investment, so as with other financial investments, attempting to time the
market is ill-advised. |
On the other hand, if your medium or long range plan
includes moving to another community and/or requiring a change in housing needs
then it may be wise to take advantage of a sellers market. For example, if the
children have all grown up and left the nest and you have been contemplating
downsizing it probably is wise to take advantage of a sellers market.
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Whatever the market conditions are, when deciding to buy or
sell a house, first evaluate your own specific goals and plans, and then assess
the market conditions. If the current housing market condition is favorable with
your goals, then certainly take advantage of it. If it is not, then reassess
your plans and see if your timeline can be stretched out to await better market
conditions. If they can not, then indeed, you may need to make a less than
favorable housing decision to meet you longer term goals.
Selling a Home?
Real
Estate Associates of New England (RANE) can help.
Contact us Today!
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