Author Topic: buy high and sell low?  (Read 2304 times)

clarkfan1979

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buy high and sell low?
« on: December 26, 2014, 05:26:53 AM »
The local news did a 2-3 minute segment on local real estate. Basically the point was that real estate is on the rebound, prices are high and thus now is the time to buy.

They interviewed a real estate agent saying that prices were up, and if you were waiting for the bottom, you missed it by a few years. The real estate agent did not suggest that now is the time to buy. He just talked about how prices were up. 

They cut away from him and suggested again that now is the time to buy. They closed the segment with a comment stating that prospective home buyers might experience sticker shock because prices are a lot higher today than they were the last couple years.

I know it's just local news and not financial advisors. However, after watching the news segment it seems more reasonable why so many people like to buy high and sell low.

 

mydogismyheart

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Re: buy high and sell low?
« Reply #1 on: December 26, 2014, 01:01:59 PM »
It actually is a decent time to buy.  Yes, a lot of people missed out on the "best" time to buy and the lowest prices.  But the market is continuing to show stable increases and is predicted to for at least the next couple of years.  Also, interest rates went down again to just under 4%.  Sure, you were better off buying back 2-3 years ago, but right now is not a horrible time to buy a home. Prices still aren't as high as they were in 2007 (in most areas, I know here in Seattle pricing is back up) and interest rates are still at a record low, and we don't know how long they will stay there. If you look at it as a long term investment you should be able to do pretty decently purchasing now.  Real Estate will always be unpredictable, so it is always a risk.  It's the people that don't hang on and freak out, selling their investments early when the market crashes, that lose out.  You have to ride it out and wait for it to go up again before you sell.  If you can.  Now is actually a good time to sell.  LOL.

clarkfan1979

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Re: buy high and sell low?
« Reply #2 on: December 27, 2014, 04:22:07 AM »
I'm not trying to tell people to not buy a house. I would like to buy 1-2 more houses in the next 5 years. However, my point was that the news segments says that now is the time to buy because prices were up. Yes, increasing prices and more stability gives people more optimism about the future. However, that drives up the price even more.

The best time to buy is when prices are down, unstable and people are freaking out. However, you will never see a news segment stating that you should buy a house at that time.

Good luck with your house purchase. I hope it brings you great joy and profits.

NorCal

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Re: buy high and sell low?
« Reply #3 on: December 28, 2014, 07:07:33 AM »
I challenge you to find a real estate agent in the history of real estate that has said "now is not the time to buy".


clarkfan1979

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Re: buy high and sell low?
« Reply #4 on: January 11, 2015, 08:09:39 PM »
I challenge you to find a real estate agent in the history of real estate that has said "now is not the time to buy".

My post was in reference to a news segment. You will never see a news segment suggest that "now is the time to buy" when the market is unstable, people are freaking out and prices are down.