Never a bad time for real estate | Business

When is the best time to sell or buy a home?

This question seems to indicate there is a best time or a specific time that is better than others. It seems to indicate that one might be able to “time the market,” that is maximize their benefits. However, there are many things that make timing the market difficult at best and impossible for all.

The question behind the question seems to be will I be OK if I buy or sell now? The answer: There is never a bad time to buy real estate.

Even in 2008 the year the market crashed, it was a good time to buy a home because since then the market has come back and the home you bought in 2008 has grown in value. The market over the past few years is growing at a rate of more than 10% per year.

But what if the market drops again. I don’t want to be “upside down.” No one knows the future, however, there is no indication that pricing will go down anytime soon.

There are a number of factors, here are a few:

First, supply issues, it is hard to get materials.

Second, work force, it is difficult to get workers to show up and get the work done.

Third, inventory, the homes coming on the market are selling quickly, and new construction has been lagging. In a normal, balanced market there is about a six-month supply. We have about a two-month supply. So, you can see that it will take us awhile to get to back to equilibrium.

What is the problem with inventory? On average, we need to build about 1.2 million homes a year nationally to meet the demands. Over the past 10 years, we have been building less than 750,000 homes a year.

You can see then that we have been behind on new homes, however, at the current rate we are building 1.5-1.65 (million) homes a year. So, we are projecting it will be a couple of years before we can get back to a balanced market.

With a low inventory, supply issues and the price or new construction on the rise, it indicates that it is a great time to sell. With low interest rates and the continued expectations of real estate appreciation it is a great time to buy.

Contact your local real estate professional to assist you in your real estate goals.

Charles Hinckley, a local Realtor, is immediate past president of the Kentucky Realtors organization and was named 2019 Realtor of the Year by the Heart of Kentucky Association of Realtors.

Charles Hinckley, a local Realtor, is immediate past president of the Kentucky Realtors organization and was named 2019 Realtor of the Year by the Heart of Kentucky Association of Realtors.

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