Just met a woman a few days ago at a business event, and we immediately began talking about real estate. She mentioned she had put her home on the market a few weeks ago. During the first week on the market, she had little activity and no offers. Anyone following the real estate market knows it has been red hot, so this had come as a surprise to her. She said that higher interest rates, inflation, the stock market being down, and the crypto market crashing all played a big part in why her home was not getting the attention she was anticipating. Therefore, she dropped her asking price by $100,000. She eventually got a couple of offers and closed escrow on her property for lower than she had hoped for.
She kept saying how grateful she was for getting the selling price she got. I thought to myself she dropped her price $100K, how could she still be grateful? She said she was grateful because her home's value had increased 20% over the last 12 months. She said she didn't get the absolute peak of the market of 20% profits, but she got 15% profits. She was thrilled that her home's value went up 15%, was able to make some money, and move on to the next chapter of her life.
My new friend makes a very good point. Would you be happy if I told you that your home's value would go up 15% in one year? Of course you would! So forget about what you could have sold your home for last month and look at the huge profits you could still get today.
Enjoy these profits while you can, because by the looks of things, the housing market is in for a major shift.
