Is This the Time to Buy or Sell?

This time of year we get a lot of questions about “timing the market.” Our “timeless” advice to give you the best chance of an optimal outcome is that the timing of your property's purchase/sale should follow your life decisions, not vice versa.

Buyer Timing

Ideally, the purchase of a home should, at a minimum, be considered a medium to long term purchase. It’s best not to try to overthink or outsmart the market. Buy for the right reasons with the right time horizon. We like using the “Five Year Test.” That is, assuming that your life situation is such that you can see owning a home for at least 5 years, buying now is better than buying later. Said differently, our tongue-in-cheek answer to the question of when the best time to buy is, "five years ago is the best time, the second best time is today". Of course, there are no guarantees in real estate but five years is a great rule of thumb. The vast majority of people who have owned a property for five or more years feel like they made a great decision by purchasing. People who wait a year to buy are just delaying the point at which they will feel like they made a great decision.

Seller Timing

If you’re selling a home, select an experienced agent with a proven track record of success, hopefully, Wydler Brothers, and work with your agent to prepare, position, and promote the home. Ideally, the foregoing will lead to multiple offers, a bidding war and a record breaking sales price! Where does “timing” fit in? It's almost always best to sell a property in the market you have, not the market you want to have. That being said, some homes might be more popular in certain seasons. For example, if your home's key selling feature is a swimming pool, then a spring or summer launch makes intuitive sense. Conversely, if your home's interior spaces are what sets you apart, and the yard/patio are relatively weaker, then a winter listing may make more sense. Either way, having a top-notch agent and plan is key.

Market Update

A new survey from Bright MLS reveals that nearly one in five homeowners is considering selling his/her property within the next year. Interestingly, it's not older Baby Boomers who are planning to sell, but rather younger homeowners who purchased during the pandemic. These individuals, particularly those in their 30s and 40s, are more likely to sell due to changing financial or family circumstances. Many of these homeowners have been in their homes for less than five years, benefiting from low mortgage rates during the pandemic and seeing significant equity gains as home prices rose. These homeowners are generally more financially secure when compared to say, first-time buyers, who remain in a tough spot with higher prices and stubborn interest rates.

Based on early indications, we also expect to see increased activity in 2025; how much increased activity depends first and foremost on interest rates. For move up buyers and sellers, also keep an eye on the stock market. Strong stock market performance increases the "wealth effect" and usually bolds well for home values. 2025, here we come!