I Timed The Market So Well

I get texts frequently from individuals looking to buy who say something along the lines of: “When do you think the next big drop is so I can buy? When will the market tank? When will be the best time to buy to capitalize on the market?” 

I say the same thing every single time. You can’t time the market. No matter how much you think you can, you can’t. 

In the peak of the market in February 2022, every buyer was justifying prices they were paying by the fact that “real estate always goes up.” Historically it’s true, real estate appreciates at 4% above inflation over time. 

That does not always mean that if you buy today, you will sell 5 years from now at $100,000 more. Buying needs to happen when a few things fall into place. 

1. You have the finances to do so (this is probably the most important.) 
2. You are ready to have the responsibility of the cost of owning a home, and the time it takes to maintain it. Unfortunately when you own you can’t call your landlord when things go awry. 
3. You have to have some sort of plan. This looks different for everyone, but planning can be a 1 year plan, or a 10 year plan, or anything in between. You will be physically tied to this home. This accounts for things like your job, a growing family, a change of income. Everything has to be considered. 

If all those boxes are checked and you want to purchase, buy when you’re ready not when you speculate that prices are going to skyrocket. Your principal residence should not be considered to be a money making investment (especially in the short term.) 

Home ownership is a huge decision to make and if you base it solely on the financial well-being of the housing market, there will always be a reason not to buy. Buy when you’re ready. Be informed, but if you watch every detail too closely, you will only think of the could’ve, should’ve, would’ves.

At Your Niagara Home we can answer all of your questions about first time home buying. We search for that perfect property for you to call home that will suit you financially, with the amount of work you want to do, and something that fits into the plan that you have for your future.