We’ve been talking a lot about buying right now – how that’s a great thing to be doing. Look, right now is maybe the best time in the past few years to spend the money because values are only going to go up from here! But does that mean it’s time to sell?? No, not necessarily.
What happens when the market goes nuts – especially when the stock market changes rapidly, struggles like it has been – is that home owners and investors feel pressure to sell homes because they’ve reached a peak value in recent years. You’ve got to maximize the investment, right? Well, listen, just because rates are all over, don’t treat your real estate investment like a stock. The longer you hold the investment the more it’ll gain.
Look at this chart; these are the gains in 5, 10 and 30 year increments on average in the US housing market. You can see that the longer you hold the more you’ll make. It’s that simple.
The thing to remember is that the stock market doesn’t dictate your home value, we’re talking about two different market places. As I said in my recent videos about how the FED rate changes are (or really aren’t) affecting mortgage rates, these changes also are not affecting your home’s value. Our housing market is of the strongest economic market places in the world. So even though investors get skittish with rate changes, and the mortgage industry is making daily rate changes just because they can, you value is hanging on.
The point is, the longer you own, the more you gain. Look at the chart again… Do the math, it’s simple. Now, obviously if you just want to maximize on your investment now because you want to, or need to use the cash for something else, sure you can sell. In Nashville your relative gain over the next year will be probably another 7% – that was our steady average growth for years before the pandemic so I think we can rely on that again this year. Which from a 25% growth in the last two years feels like a flatline, but it’s still growth.
Whatever you decide to do, I hope this was helpful. Let me know if you’d like me to look at your unique situation, I’m around everyday doing this. Talk soon.