Lakewood, OH · Member since 2013 · 193 posts · 60 votes
I saw this article, and thought it was worth posting here.
The number of people who believe now is a "good time to buy a home" has been stagnant for the last 6 months, but, according to University of Michigan's latest survey, there has not been more people who believe now is a "good time to sell" since March 2006... which marked the absolute peak in US home prices...
What happens next...When everyone knows it's a bubble?
Seems like a surge in "good time to sell a home" since The Fed 'unleashed' its rate rise environment... maybe time to back off that rhetoric before they implode another welath-destructing bubble.
Investor · H, NE · Member since 2015 · 54 posts · 17 votes
10y
Bubble or not I'm going to keep buying. If interest rates rise, then my home value may be lower, but the demand for a good rental will increase. I'm not in this for appreciation. #RentRoll!!
Investor · H, NE · Member since 2015 · 54 posts · 17 votes
10y
Bubble or not I'm going to keep buying. If interest rates rise, then my home value may be lower, but the demand for a good rental will increase. I'm not in this for appreciation. #RentRoll!!
Real Estate Broker · St. Louis, MO · Member since 2014 · 206 posts · 194 votes
10y
Here is my opinion.... Now is not a good time to buy from a market timing perspective. Are there still good deals out there? Yes, but they are few and far between and you have to get very creative to make them work. I have made some great deals over the last year but they were also in a niche space that most people do not play in.
If you are in the flipping game then I would strongly consider lightening up on exposure and inventory. If you are in the rental game, then I would suggest keeping some powder dry for future buying opportunities.
Unfortunately I see some of the same signs of overheating that I did in 2006. I have not yet seen a group of restaurant workers pool their money to do a $1M flip in Florida like last time, but I don't think we are far off.
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
10y
A good time to sell is when you find a qualified buyer that will agree to your sale price. A good to buy is when you find a seller that will agree to your purchase price. The trick is to determine these prices such that you will optimize your upside while still covering your downside and finding the buyer and/or seller who agrees. Mr. Case or Mr. Shiller or their index have nothing to do with the decision, other than maybe to point towards which transaction is more likely at any given time. If your investment strategy hinges on whether or not the market will go up or down right after you buy, then you are doomed from the beginning.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
10y
It is ALWAYS a good time to buy according to one of my mentors. It is not always a good time to sell. I put one under contract this week and hope it does close. It will meet the famous 1% rule but just as important, it is far enough below market value that the market would have to take more than a 20% drop for me to be near a break even. I am a buy and hold investor seeking stable rent income. Appreciation is both a bonus and a negative (due to paying higher property taxes and insurance).
Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
10y
It's a good time to sell if you need cash but it's always a good time to buy. I am still buying and don't likely ever see myself stopping as long as good deals are still there to get. If people sell because they are scared of the next bubble that's fine by me, they can come rent one of my houses because everyone has to live somewhere.
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
10y
100 people surveyed says!
When is it a good time to buy and when is it a good time to sell? Depends on your unique position doesn't it? I bought houses at the peak in 2006/2007. Got conventional financing on them. There were a few years of pain, but then over a period of 3-4 months, I started getting certified letters in the mail requesting I refinance those houses under the HARP program. It took more than a few tries, but all eventually went through and now I have 30 year fixed rate mortgages on them all under 5%.
Was it a good time to buy then? I don't know.
Are they all great rentals now that have equity and cash flow with stable, low interest rate financing? Yes.
Is it a good time to sell now? As a wholesaler, I'm selling houses every week. Closed on a deal yesterday and opened escrow on another. I will tell you that I wish I could have kept every house I ever bought though. All of them. Unfortunately, one has to eat... Even Top Ramen isn't free. Almost, but not quite.
I ignore all the mystics, seers and soothsayers with their tinctures, potions and remedies.
You do what is right for you at where you're at. An investor in his 70s might think this is a perfect time to cash out. An investor just starting might think it's a great time to buy and hold.
Regardless, 50 years from now someone will look back at 2016 prices and say, "I wish I could have bought every house in the neighborhood at those prices!"