Skip To Content

Are you trying to “Time The Market”?

Are you trying to “Time The Market”?

Timing the market rarely works in spite of intuition and the best advice.

You may be wondering what timing the market means? Well, it’s pretty simple in concept. Timing the market is basing your decision to buy or sell on economic factors such as interest rates and home prices. In a buyer’s market, there is usually a surplus of inventory, resulting in lower prices and more available options. A seller’s market, on the other hand, is characterized by a lack of inventory, resulting in higher prices and fewer available options. If you can find a way to buy at the bottom of a buyer’s market and sell at the top of a seller’s market, then incredible profits are readily available.

This seems so simple, but the world of real estate is more complicated than this. Prices aren’t just tied to inventory. Many economic factors affect housing, including mortgage rates, incomes, loan availability, and prospects for the future. And even with the best information at your fingertips, real estate prices may fluctuate based on other factors that cannot be evaluated easily. Because of this, the real estate market is notoriously unpredictable. Predicting the rise of housing prices over time is simple enough because that’s how they’ve historically developed , but from year to year, and decade to decade, even our best real estate experts and economists are reduced to scratching their heads. Professionals and economists were shocked by the 2008 housing market crash. Economists were warning of a real estate bubble bust as we entered the pandemic, and housing prices exploded. If even our best experts can’t predict how real estate will develop in the immediate future, then the average person has little hope of accomplishing the same endeavor.

Adopting the mentality that you’re going to time the market sets you up for failure, since it conditions you to make emotional and impulsive decisions. Instead of following an objective, grounded strategy, you’ll be scrambling to make purchases or sales in response to what you think is a peak condition. Real estate is a great investment. There is no doubt about that. But being pragmatic in your approach is paramount, whether you are an investor or an average homeowner.

Rather than placing attention on timing the market, focusing on factors like location, house specs, and potential for profit will yield a much better end result. Also, engaging the help of a licensed professional to assist in evaluating these factors is a huge help. With the help of trusted professionals, investors and homeowners alike to make thousands, if not tens of thousands in real estate every year. Most homeowners stay in their homes an average of 10 years. Because of this, the average equity when selling is multiple thousands for most homeowners, making real estate a safe and profitable venture.

Real estate is always a great investment, when approached with the right mindset! Keep you eyes on the prize and profits will surely follow.

If you would like more information, or are looking for someone to help you better understand and navigate the market, reach out to us! Fill out the contact form below and we will be in touch shortly! We look forward to talking with you

Trackback from your site.

Leave a Reply