Wednesday, September 20, 2017 / by David Mcduffee
One question we are often asked by potential buyers is, “If I buy when the real estate prices are high, won’t I lose money when I sell my home?” We have no way to tell the future, and we can’t be certain what the market will look like in one year, five years or even six months for that matter.
What we do know is this; the real estate market has NEVER had a permanent decline. For example, before our most recent recession (beginning in 2008), home prices were the highest they had ever been. During the recession home prices dropped dramatically, and almost everyone who bought just before the recession paid more than their home was worth when the market declined. This was considered one of the worst recessions in history, largely due to home loan fraud and sub-standard mortgages.
Fast forward to today.. The average home price in many parts of the country, Portland included, has exceeded the previous market high point, and we have personally helped numerous homeowners sell their homes for more than they paid at the top of the market before the recession. And this has happened less than one decade after one of the worst recessions in our countries history!
So what is my point here? Real estate is more expensive than it has ever been in Portland, and the market is in a much longer than average expansion, so there is a chance if you buy today, it may be a few years before you can sell your home for more than you paid. There is also a chance that the real estate market will continue to increase in value, and if you wait to buy, you may pay much more in the near future than you would today. We don’t know for sure what will happen to home prices but history indicates that if you live in your home for a reasonable amount of time, you will almost certainly recoup your investment and probably make money. So don’t be afraid to buy a home just because prices are high! Just be committed to buying a home that you will be happy living in for the immediate future so you can ride out any market corrections or downturns.
One thing is certain, you won’t recoup the money you pay in rent EVER, and that is a 100% certainty.
So go out there and find the home of your dreams. We would love to help!