We all know the media loves a sensational story and there have been plenty surrounding the real estate market. Lately there has been lots of talk about interest rates and why now is not a good time to buy…
But when we compare what the talking heads SAY is going to happen compared to what has ACTUALLY happened the outcome is very different.
The following example starts with a buyer looking at a home valued at $300,000
Oct 2015 “Housing today- a bubble larger than 2006” - we saw 5.1% appreciation - home is now worth $315,000
Aug 2016 “We’re in a housing bubble” - we saw 5.4% appreciation - home is now worth $332,000
Nov 2017 “Homeownership doesn’t build wealth, a study finds” - we saw 6.1% appreciation- home is now worth $353,000
Sept 2018 “It’s better to rent than buy in today’s housing market” - we saw 4.1% appreciation - home is now worth $367,000
July 2019 “The housing market is about to shift in a bad way for buyers” - we saw 4.0% appreciation- home is now worth $382,000
Dec 2019 “Next year will be hard on the housing market, especially in big cities” - we saw 16% appreciation in 2020- home is now worth $443,000
July 2021 “Housing boom is over as new home sales fall to pandemic lows” - we saw 18% appreciation - home is now worth $523,000
Had fear consumed this buyer back in 2015 they would’ve lost out on $223,000 of increased value, not to mention the seven years of payments made on the mortgage creating even more equity.
Remember, the interest rate on rent is 100%….
Make your financial decisions based on logic, reason and expert opinions. Don’t make decisions based on fear as you may miss out on big opportunities.
Real estate continues to be rated as one of the BEST long term wealth strategies.
Questions? Leave them in the chat or DM me. You don’t have to do this alone.
