I'll start this off by asking a simple question... would you purchase a home at point A or B?

RatherBuy_ (2)

The obvious answer here is to purchase a home at point A, but why is this NOT the common mindset?

As a real estate professional I hear the following almost weekly;

  • "I'm waiting for the market to crash before purchasing"
  • "When will the market level off?"
  • "Two years ago this house was worth x, now it's overpriced"

How now compares to 2008

The crash of 2008 has since made many people hesitant to get into the housing market, as it should. The poor lending practices that caused the market to plummet nearly 14 years ago have since been regulated and monitored to ensure history doesn't repeat. The Big Short, is a movie that all aspiring homeowners should watch prior to getting into the market to understand truly how it all went down. Getting pre-approved for a mortgage in today's market is a process that requires; proof of assets and income, good credit, employment verification, and other types of documentation to ensure you can afford the mortgage of a home.

Psychology of the chart above

Although you purchased a home at point A and it went through a recession, you still paid less than you would've if you purchased at point B after a "crash". It feels better in the short term to say you didn't purchase at the top of the market but

I'll insert one of my favorite quotes here, "Don't buy real estate. Buy real estate and wait." - Robert G. Allen