Just like any other investment, purchasing real estate should be a long-term proposition. This is especially true in todays volatile housing market. Buy low and sell high is the goal of every homeowner. Circumstances outside the owners control can have an effect on the best time to buy or sell. A job transfer, divorce or another life altering crisis might force a move before the optimum time.
The era of get-rich-quick real estate is no longer feasible. The era of increasing long-term wealth is back. Buyers are not likely to see prices skyrocket the way they did in the early 2000’s. Since 1968, prices have appreciated over 5% annually. That includes the years of double-digit appreciation and the housing collapse that followed. The swinging back and forth pendulum is probably over for the forseeable future.
The definition for holding real estate long-term should be a minimum of seven years. Buyers today have the advantage of low-interest rates and home prices. Buyers who can find the right home and be content for seven to ten years will be happy that bought now. There are signs all over the country of a recovery from the housing bust, home prices should settle into a consistent price growth trend that’s higher than inflation over the long haul.
The smart way to own a home has three basic elements. Those three are a fixed mortgage, affordable payments and most importantly, a long-term hold. The all-time low-interest rates have made the first two desirable and obtainable. A recent survey found eight of ten adults stated owning a home is the best long-term investment a person can make. This confidence exists even though we have been mired in the longest and deepest decline in American history. Real estate is and has always been cyclical.
The last decade has been a deviation from the norm. The highs and lows we experienced during that period have been enlightening for everyone involved with the real estate industry. The lessons learned will prevent the huge fluxiation of home prices and make for a more gradual increase in housing values and a slower wealth building commitment to your home. Purchasing real estate for the long haul is the new American dream. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home,scan my informative blogs, join my professional networks on Twitter and LinkedIn and easy access to view local area homes for sale in Davis, California and our surrounding communities.