I have had so many people ask me "What do you think is going to happen to the market?" I do not have a crystal ball, nor do I predict the future. I can only comment on my own personal experiences and in 1989 we saw the real estate market basically tank... and during that time I was heavily invested in the market and also pregnant with my first child. So that will age me.. ha ha :)
To make a long story short, the last home I bought in 1989 which was the peak of the market, I sold in 2008 for the exact same price that I paid in 1989... so all I am saying is, if you are going to buy at the peak of the market, you must be able to afford to hold it until it rallies back. (AND it will rally back).. it always does.
I am not trying to scare anyone or say the same thing is going to happen because back then, interest rates was upwards of 16.0 percent... which is crazy compared to today's low interest rates... but when I looked at these charts it was chilling to seem how it matched my real estate lesson ! So you can say I am crazy or I don't know what I am talking about, but it is coming... I just listed a end unit townhouse and on the first day had 12 showings and 2 called for pre-emptive offers.
To make a long story short, the last home I bought in 1989 which was the peak of the market, I sold in 2008 for the exact same price that I paid in 1989... so all I am saying is, if you are going to buy at the peak of the market, you must be able to afford to hold it until it rallies back. (AND it will rally back).. it always does.
I am not trying to scare anyone or say the same thing is going to happen because back then, interest rates was upwards of 16.0 percent... which is crazy compared to today's low interest rates... but when I looked at these charts it was chilling to seem how it matched my real estate lesson ! So you can say I am crazy or I don't know what I am talking about, but it is coming... I just listed a end unit townhouse and on the first day had 12 showings and 2 called for pre-emptive offers.
So the answer to the question from me is "time will tell" but everything I read tell me we are in for a correction. When I don't know... because the next chart makes it look like we have a way to go when it comes to percent change of prices but then again, the prices were half of what they are today.
Just some real estate history for my friends... off to work... have a great weekend everyone !
Your friend in real estate,
Michelle Makos
P.S. I always appreciate your referrals.
