Timing-The-Market Is Like Playing the Slots

The most frequently asked question that those of us in real estate are faced with these days is what’s happening with prices? Despite the fact that real estate sales activity has diminished in recent months, the demand for area property hasn’t and it has been proven repeatedly that a depressed market is typically followed by sustained periods of robust real estate sales and increasing prices. This stems from the pent-up demand that has resulted from buyers having sat on the sidelines for weeks if not months as they try to “time the market.” Real estate sales have in fact has led us out of many an economic downturns and this will likely be the case this time as well.
If you are a buyer attempting to “time the market” you are no doubt holding off making a purchase with the belief that both prices and interest rates may or will drop. As such, you are not trying to “time” just one aspect of the market but two which makes the perfect timing of your purchase even more unattainable. Buying real estate should not be treated like the purchase of a stock, mutual fund or priming that one particular slot machine for the big pay-off. Real estate is typically purchased based on family and or lifestyle needs yet when we are in a market that has shifted towards a decline that very same purchase gets more driven based on price.
Prior to entering real estate I came from a corporate background much of which involved manufacturing. As the quest for improved quality became ever increasingly more important for virtually every business no matter what your product, the goal was to strive for “zero defects,” a virtually unattainable goal that meant to reduce your costs while improving customer satisfaction. For buyers, trying to time-the-market the market is a lot like the unattainable goal of “zero defects.” The only way in which you will ever know when prices have bottomed out is when they have already started to increase. By then you’ve missed the bottom and perhaps the chance to buy the perfect property for your family and lifestyle which is what the purchase should have been based on all along.
My prior goal with every buyer client is to find them the property they need and want in the price range they can afford. In addition to this I also Endeavour to ensure they obtain good value, a property that will be a good investment and one with good resale potential. Right now the market is filled excellent opportunities for buyers to obtain just that. The selection of MLS® listed properties has never been better. Prices are stable and interest rates for those requiring a mortgage are exceptional. Now is in fact the “perfect storm” for buyers and those waiting to “time-the-market” may well miss the opportunity of a lifetime.