?to buy right now or to wait?

Question

Overall what we’re seeing in our area is a rise in inventory as well as an increase in average days on market. We’re seeing more and more price decreases as interest rates rise and many buyers are choosing to not participate in the market right now.

The benefit to the buyers who are interested in investing is the decrease in purchase price, (especially compared to what homes were going for 6 months ago!)

This market is for buyers who are eager to negotiate a deal and get a home for significantly less than asking, buyers who have cash, and investors who know how to play the game.

Thoughts? Things to add here? Where is everyone at as an investor right now? Whether you are helping someone with a real estate purchase, or, you yourself are buying — is now the time to buy or wait? Why?

Michael Dumler · Answer

@Katelyn Atcavage robideaux, to keep things up front and what experienced investors will reiterate; do not try and time the market, don't wait to buy but instead buy and wait. If the property cash flows on day one and you plan to hold for 5, 7, or 10+ years then trying to time the market will always be ill-advised. Just my two cents.

Bruce Woodruff · Answer

The time is right when you find the best deal for you. Period. Nothing else matters. Of course it is nice to see prices drop from their inflated highs, but that is coupled with rising interest rates. There is no perfect time to buy.

Steve Kontos · Answer

@Katelyn Atcavage robideaux

People who spend too much effort into timing the market often lose. My attitude is short and simple: everything around us is nothing more than noise. The people who create and sustain true wealth are those who stay focused on their business. It's still a great time to buy and there are still many great opportunities for us.

Shiela R. · Answer

@Katelyn Atcavage robideaux, hello :)  There are a lot of opinions about what to do.  Search BP for a wealth of info.

As a seasoned investor, I know that markets are cyclical.  AND markets go up and down.  I've lived through a cycle and anything under 12 months is a bit soon to be calling things a deal, IMHO.  10% is not a deal if values drop by 25% over the next year. Keep in mind most comps are from 6-12 months ago and prices are falling and continue to fall in a lot of areas.  The book Recession Proof Real Estate Investing by J Scott is a good, simple read on how to adapt to market shifts.  So, I actually know you can time the market if you know what you are doing.   I have many times, successfully. It depends on your end game - a LTR you buy and hold is different than a flip or STR or even investing in syndicates that cross over to commercial.

As always, know your market! Maybe there are deals in your area? IDK? :)

Ricardo Hidalgo · Answer

I think this is area dependent because some markets may adjust more than others. Our market hasn't seen huge price drops and inventory continues to move in days if its a trophy property at list price. If numbers cashflow and you are planning to hold 5 years or longer, it wouldn't be a bad idea to negotiate better terms in comparison to the last 2 years during covid. I think rents are going to continue to increasing therefore some may consider home ownership quickly because they will fix at a fixed cost.

Tony Severance · Answer

I am working with my clients to get them in position to strike when a good buying opportunity presents itself.  I agree with Bruce above...Everybody has a different opinion on when the time is right.  It depends on the individual and their specific investing philosophy.

Bob S. · Answer

Just put in a bunch of low ball offers, you never know .

Karl B. · Answer

In my market, if I was a newbie, looking to buy one deal, I would wait.

But since I buy multiple properties a year, I'm looking for deals now, as I have a lot of capital sitting on the sidelines. I'm seeing a lot of overpriced stuff in my market and am being patient, though turning over rocks does yield good deals, if you keep turning them over to see what's underneath.

In the near future, some people are going to need money - and fast. In some cases they won't want to wait for a realtor to list their house as they'll need the money sooner than later; if you can fill their need and close quickly with cash you're in the driver's seat for a nice discount.

?to buy right now or to wait?

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