(This is part 3 in a series of posts I’m doing to share some concepts/data to help inform your decisions to buy/sell real estate in this market.)
When is the best time to buy a home? While there are several things that go in to that answer- when you’re ready financially, how long you can live in that home before needing to move, etc…. The short answer is- YESTERDAY!
Check out this visual representation of what home appreciation has done over the last sixty years. This graph from The Federal Reserve Bank of St. Louis (FRED) shows the average sales price of houses sold for the United States beginning in 1963 and going through quarter 4 of 2022. The data is reported quarterly and not adjusted for inflation.
THE TAKEAWAY: Yes, there are ups and downs in the market. Sometimes BIG ups and BIG downs. There always have been and there always will be. But check out that curve- up, up, up!!! Even when it dips, the real estate market ALWAYS comes back. Keep a level head, make good financial decisions, and if you’re ready to buy a home, then buy a home! I’m not an investment professional or financial advisor- make a game plan for yourself with your advisor- but there is a myriad of data that shows that homeownership and real estate are some of your best paths to building your own personal wealth. Plus all the added benefits of fixed housing costs, stability, freedom to customize how you want, etc. The goal is to make the curve work for you.
(Image and source citation: U.S. Census Bureau and U.S. Department of Housing and Urban Development, Median Sales Price of Houses Sold for the United States [MSPUS], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MSPUS, February 25, 2023.)