Those who think they can time the market are playing a “fools’ game”. Did I just say that! Why would consumers think they can predict the economy? Is it the right time to buy the right piece of property, yes, or no? The answer is always “yes.” Timing is a fool’s game. You should always be looking to buy the right piece of real estate. By studying history of the market, it allows you to be informed about the current conditions compared to history and that is very important.
Let’s just look at some information from a recent chart that Gary Keller shared at the Mega Camp of Keller Williams Realty. The chart was for the period of 1990 to 2023. In 2006 the median price of a home reached $222,000 which was 21% above the then-trend line. Meanwhile in 2023 projected median sales price is $382,000 which is 7% above the current trend line. People say that real estate is “way over priced”. But shockingly, it’s not phenomenally overpriced. Looking at the trend line at $387,000 in 2023 it should be at $337,000. Did you know if the price drops by 1% we would only be 2% to 3% above of the trend line. Gary Keller said improving affordable housing is a municipal issue. They need to reduce the red tape and invest more funds into helping first-time buyers.
An interesting stat is that American consumers are overspending on cars which holds the top spot on the inflation list at 16.9% for insurance cost, 12.7% in maintenance costs, and 11.6% payment costs and all the while trying to cut corners on purchasing a home. A car is not an appreciating item either and it begs to wonder have we got our priorities wrong? One other fact that most people don’t know is that homeowners’ net worth is 35 times higher than renters.
Educating home buyers and home owners is extremely important so that they can make informed decisions about purchasing and selling real estate. Realtors like "The DeBerry Team" who study history about home statistics come well prepared to give those looking to buy or sell the right information to make that decision. Much of the information in this article was from KW Mega Camp where agents are educated on the history and dynamics of the real estate industry. If you need more information about buying or selling at this time, please contact Roxanne DeBerry @ 214-676-8040.
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