Why would I want to Sell in this Market?
One scenario might be that you have a great amount of equity in your home. Perhaps you raised your family in the home and now the kids have moved out and you don’t need the space anymore. Now would be the perfect time to capitalize on that equity. You can keep much of that cash if you like and purchase a smaller home at a very low interest rate.
Why would I want to buy in this market and compete with others?
If you have either cash to purchase a home or have a good financial situation, including good credit, and a good handle on debt. Purchasing a home is a great way to build wealth. Homes have increased in value at a very fast rate in the last few years, some have increased $100k or more. Compare that to a rent situation where a similar monthly payment may exist with zero gain in your overall financial worth. Also consider that every payment you make brings you closer to paying off your home.
Perhaps you are a cash buyer or investor, how many investments yield a return like this?
In today’s economic climate we are seeing inflation. In fact, most of us have equity in our vehicles, so when this occurs, it is best to own tangible assets such as real estate.
Should I be worried about home prices rising and a housing market crash?
I remember 2009. True home prices did rise substantially from 2003-2009 but this was a very different situation. Lenders were giving loans to anyone with a pulse including very high risk mortgages to individuals with a poor credit history. This allowed more people to purchase homes causing prices to rise. Then when thousands of people couldn’t keep up on their mortgage payments and went into foreclosure, these flooded the market lowering home prices. Today home prices are rising for much better reasons. The market has many well qualified or cash buyers who want homes but there simply are not many homes to purchase.
So in short, now is also a great time to purchase. Interest rates will begin to climb over the next few years and if you can lock in under 3% for 30 years, that is fantastic.
Have you been thinking about selling or purchasing a house? Contact John for any questions and guidance on your real estate journey.
John Innes
Phone: 804.398.0399
Email: john.innes@reRVA.com
“Every sale is different, and having been a self-motivated entrepreneur for decades has exposed me to a wide variety of challenges that allow me to successfully solve issues that may crop up during a transaction for my clients. My vast network of vendors, service providers and specialists ensure that you will have the smoothest transaction possible.”
