Whether you’re talking about the stock market or the housing market, people are always trying to time their buying and selling to their best advantage.
A few years ago, folks were trying to sell at the top of the housing market to maximize their profits. (I know, that sounds rather foreign right now, doesn’t it?)
Since fall 2005, Washington-area real estate has been sliding downward into the slow, overloaded market we have today. Many sellers have come to accept that they have to drop their price to find a buyer. Others have decided the market is too unfavorable to even try selling.
Now that people have grown accustomed to this buyer’s market, we’re beginning to hear that question about timing again. Buyers are wondering if they are buying at the bottom of the market, or whether their new home will decline in value after settlement.
Well, if you have tried timing the stock market, you know it isn’t easy. More often than not, you lose. So most experts recommend you buy and hold - and the same is true in real estate.
Now is a good time to buy because there are tons of homes on the market and they are less expensive than they were a few years ago.
Plus, it’s possible we are at or near the bottom. Just looking at Northern Virginia, you’ll see sales chances have improved some. That’s because sales aren’t falling like they once were and the inventory isn’t rising like it did in 2006.
Home prices are still down, and it is taking a long time to sell a home, but both of those are a result of the huge oversupply of unsold homes. As sales and inventory figures stabilize, the price and time-on-market numbers should begin to turn around.
Don’t misunderstand me. I’m not declaring that we’ve reached the bottom, but there are some encouraging signs.
One more thing. Remember, for most of us, a house is primarily a home. You don’t live in an investment. Yes, homes will go up in value eventually, and that’s why homeownership is a good idea.
Don’t let the investment aspect overshadow the more important questions of location, layout, number of bathrooms, etc. These are things that make that building into your home.
Contact Chris Sicks by e-mail (csicks@gmail.com).
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