I hear a lot of chatter these days regarding the real estate market.Â Some speculate that it’s a time to hold on to your house, and use a wait and see approach.Â Meaning that the market could tick higher and you might miss out on additional capital gains.Â OthersÂ will urge you to get out and lock in your gains now, and not to gamble with it.Â The latter group is usually comprised of mortgage bankers and real estate agents.Â This is all well and good, but it has to leave you wondering what the right choice really is.Â The truth is that nobody, sans a crystal ball, can tell you when the perfect time to sell your house may be.Â What I can do is lay out some of the current facts and my opinion, and hopefully it will make the decision easier on you.
I know as a certainty that I could sell my house for a profit right now.Â I bought at the bottom of the martket in 2010, and in just a few short years I have seen it dip a tad lower and now skyrocket much higher.Â What I don’t know is whether or not the house prices will go higher, or take another dip similar to one we last saw.
Interest rates are currently very low, in fact they are lower than when I purchased my house.Â The Fed has promised to keep them low through the year, but nothing is a certainty accept what I can currently see in black and white.Â Buying a new house that costs more, butÂ at todays ratesÂ could actually come out to a cheaper payment.Â Imagine that, a cheaper mortgage payment for more house.
As I explained above, itÂ stands to reason that if I sell one houseÂ I am going to be interested in buying another.Â New constructions are becomingÂ more frequent again, and the influx ofÂ owner sold properties isÂ becoming a bit scarce, which is also bringing up the price tags.Â Quite honestly, I just need to figure out what I can afford after selling the house, and the determiningÂ what is available in my price range.
Can youÂ see a recurring theme here? The answer of whether or not to buy, sell, or stay isn’t a one size fits all approach.Â The most important aspect of making the decision is that speculation may do you good, but it may do you harm as well.Â Playing the guessing game can pay off, but it is also akin toÂ gambling…just ask thoseÂ real estate speculators what happened back in 2009.