Just sold my house at what I think is the top of this market, what do I do?

[mkodom1]

Market is crazy right now. Listed my house in Asheville, NC and had several offers within hours of it being on the market. Now that my house is under contract and my wife and I having 100% remote jobs, she's a HR benefits manager and i'm a software engineer, we are thinking about moving closer to family so we don't have to drive as far to see family.

Should we rent and wait for what I expect an unavoidable market correction? Or would it be safe to buy a nice lot of land now, and then wait a year or so and build on it while I rent?

If there was a market correction and lots of foreclosures, would I have the ability to get a deal then? Or would all the cash investors with bank contacts scoop them up before they hit the market?

It's hard to say because if the market keeps on a steady rise for another 3-5 years I would be missing out on that equity as well. Assuming I could get out as easy as I just did before the crash comes.

Thanks for the help!

[Mr. Green]

Total crapshoot. There may or may not be a housing market correction in any particular location. The unprecedented ability for people to work remotely is shaking things up and no one knows how it'll all play out. I wouldn't bank on one though.

[bioneerandy]

Never try to time the market, observe the general trend, factor in the short term emotional volatility, and make decision more based on your own financial situation.

[waltworks]

Wait, you're an engineer, and you sold your house without actually having a plan for what to do next?

Mr. Green is right that nobody knows. Lots of us expected a housing crash this spring when Covid hit. We were all wrong. Any predictions anyone makes on this forum are worth what you're paying for them.

If I were you, I'd get a van and a mountain bike and go wander around and figure out where you want to live.

-W

[Greenback Reproduction Specialist]

Wait, you're an engineer, and you sold your house without actually having a plan for what to do next?

Lol that right there is funny

[StashingAway]

If I were you, I'd get a van and a mountain bike and go wander around and figure out where you want to live.

-W

Lots of people doing that, too! MTB market is off the rails, and so is the sprinter van market. And parks are only 1/2 open, so it's busy out there... or at least it was this summer ;)

[FINate]

COVID could drag on for years with failed vaccines and economic depression. Or a vaccine could largely wipe it out followed by tons of Fed Reserve cash sloshing around in the system rushing into equities and housing.

Real estate is a long-term commitment. Buy something when you're sure you want to live in that location + house for 10 years or more. Otherwise, rent. The bigger question is what do you do with the proceeds for 1-2 years?

[mkodom1]

Yeah my plan all along was to rent, and wait for the supply to catch up with the demand. I am worried about all this potential inflation, and sitting on all this cash waiting to put it into another house.

I do agree if we find a home we love there is no risk in buying it because we plan on being their for the long run. It's just hard stomaching the purchase of a 1700 sq ft home in Asheville for 350k +.

Thanks for all the help! It's nice to think out loud on here.

[MrsCoolCat]

I wish I had that problem. We're looking at a $425k home built in 1992 (4BR) that just has about 1,886 sqft, so that's a steal. Ugh it's so overpriced I am also wondering if it will get cheaper and when. The prices here are either the same as 2008 if not higher now.

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[HPstache]

I'd rent in whatever city I want to end up in for a year or two and figure out "which side of the tracks" I want to be on.  I'd also be tempted to buy land and plop an RV or double wide on it and start saving up and thinking of house plans...

[slappy]

I wish I had that problem. We're looking at a $425k home built in 1992 (4BR) that just has about 1,886 sqft, so that's a steal. Ugh it's so overpriced I am also wondering if it will get cheaper and when. The prices here are either the same as 2008 if not higher now.

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It doesn't really matter if you plan to be in the home long term, right?