Why would you buy or sell real estate right now?
We are in one of the greatest real estate markets we have seen in quite some time. What defines “great?”
For starters, Washington County home values are up by an average of $110,000 since 2013. $110k!!!
No, it’s not sustainable, but it’s real and the market is supporting these prices.
Second, very different from the real estate bubble of 2007, buyers are actually qualifying for the homes they’re purchasing…go figure! 😊 All kidding aside, the market of a decade ago saw home buyers “stating” their income to falsely qualify for homes they simply couldn’t afford. At least they couldn’t afford them for long.
There is an analogy I like to use with my clients that pertains to our current market situation.
Imagine you’re on a long road trip into an area you do not know very well. After you’ve been on the road awhile, you pull up to a remote gas station and you say to your travelling companions, “We’d better stop now because we have NO IDEA where the next place is..” All you know about is right now…that there’s a gas station with a (semi) clean bathroom, ice cold coke and treats. That for you know there’s nothing for 200 more miles.
- Right now, we know that interest rates are hovering around 5%. We also know that real estate cycles typically last seven to 10 years, and we are 7 years into an “up” cycle.
- We know values are at a 10-year high
- We know that Buyers can qualify to purchase the home you may want to sell
But we DO NOT know what those same factors will look like 12+ months in the future and beyond.
We know, quite simply, about NOW.
A little over a decade ago, we experienced the biggest financial crashes since the Great Depression. Today we’re looking at real estate values approaching 2007 levels…what a difference a decade makes!
To clarify, I am not saying you should buy or sell a home; that is up to you, your family, and your current situation.
But….there is a beautiful gas station right in front of us and we do not know if there will be another one for the next 200 or 300 miles.
If you would like to talk more about whether now is the time for you to buy or sell in our market or you have any other real estate questions for me, please feel free to call, email, or message me on my website. I would love to speak with you.