I’s easy to find an expert to tell you what you WANT to hear.
Pretty much every day, someone asks me if this strong real estate is going to continue to gain strength?
There are plenty of experts out there who are singing some pretty draconian predictions.
After all, we’ve seen this before, right?
Is this just another “House Buying Feeding Frenzy” that’s going to drive prices up “Unnaturally” only to crumble into a “DIP?”
Are we back into this game of “Borrowing Buyers from the future” as we fervently continue to try to keep up with the demand for inventory by building whatever we can build as fast as we can so as to satisfy the seemingly endless thirst of today’s house buyers for MORE?
All the while, we complain about RISING PRICES and TRAFFIC CONGESTION as we revel in the thrill of the hunt.
Lending guidelines are starting to loosen up . . . Lower credit scores are now more acceptable than before . . . Higher Loan to value loans (With blended products) are making a comeback.
Intrepid Developer Explorers are pushing to (and beyond) the edges of many governmental restrictions, and the battle lines are now drawn between the people interested in preserving the “Character and Feel” of the neighborhoods VS those dashing explorers intent upon seizing the opportunity and capitalizing on EVERY possible income generating idea that crosses their minds.
Who’s got scruples?
Will there be winners?
Are today’s “Winners” ultimately going to FAIL (As they did 6 years ago) and bring us all down with them?
Are “they” over-building?
Are today’s buyers paying too much for what they’re getting?
“Nashville prices” are starting to look a little like “NY and CA Prices.”
Will it just be a dip – a pause to take time for resupply and refining of strategy?
How much are you willing to bet on what I see in MY Crystal Ball?
What I see is he same thing I have seen year after year through my 20+ years working with Home Buyers and sellers.
The people who buy for the right reasons almost always come out ahead.
These are people who don’t buy a house or condo “because It’s a good investment” because they know that they cannot control the market and value swings. They know that the value of a house really only matters when you are selling it . . . and how could anyone possibly know all THAT now?
These folks expect to pay enough of a down-payment such that there’s enough “cushion” to financially insulate them from market swings.
They accelerate their payments so as to pay the mortgage balance down as quickly as possible (Build equity), and they live on a frugal budget and set aside at least 10% of their income into savings.
These people buy houses for long term dwelling instead of short term gain.
Rather than buying HUGE, they buy smaller and tweak as they go. It’s awesome to live in the nicest house on a modest street.
So . . . what’s my crystal ball say?
I’m not sure it really matters, if you’re buying real estate for the right reasons.
I LOVE talking with folks about this stuff. Connect with me if you’re ready to peer into my crystal with me and talk about your own strategy.