Everything You Wanted to Know to Time Your Home Purchase
Using the “Business Cycle” to Time Buying Your Home/Vacation Home
or
Everything You Wanted to Know About How to Time Your Home Purchase to the Market Cycle
Bonnie Jessee, Realtor
530 412 3984
Ah, if only we had that special real estate crystal ball! Then timing your purchase to the cycle would be an easy task!
Attempting to time your purchase to the “business” cycle is sometimes getting lucky and sometimes paying attention to the small signs. Even economic advisors and consultants have inconsistencies accurately predicting the future economy. Even when these experts are relatively successful, the real estate market does not necessarily move in tandem with the economy as a whole.
Part of the reason is the timing and inconsistency of interest rates.
During periods of economic growth, interest rates are generally higher. Therefore fewer people can afford to purchase a home or second home unless they are cash purchases. When the economic situation is slower, interest rates fall, and more people can afford to purchase a home by obtaining a mortgage.
As you can see, this cycle does not move in conjunction with the remainder of the economy. It is also influenced by levels of employment, pay scales of various jobs, and consumer outlook for the future. Such facts make it difficult to know ~ ahead of the time ~ whether the housing market is going to be a wise investment.
The best advice is to preview the market where you intend to purchase, deal with a professional Realtor®, and plan on holding for as many years as possible.
Unless, of course, you have a crystal ball however, please note that we are seeing stabilization and even rising prices in Truckee and North Tahoe. I urge you to contact me at your earliest convenience to check out what the professionals in the area believe are the lowest prices we are going to see for several more years! Call me at 530 412 3984! Thank You – Bonnie Jessee
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