Is it a good time to buy?

[Sammy Lyon]

How come realtors always say it’s a good time to buy? Isn’t that kind of weird — how can it always be a good time to buy??

Well, think of the concept of dollar cost averaging in stocks — instead of buying stocks one time, you invest consistently.

Sometimes you buy low, sometimes you buy high.

But as long as you stay in the market, you benefit from the tendency of the market to go up over time.

People think of buying a house as this one time thing, but it’s actually more likely that you will buy, sell, refinance a few times over the course of 30 to 60 years. This is the real estate version of “dollar cost averaging.”

So even though home prices do go up and down, they tend to go up overall.

If you get in the market you are getting a piece of the pie, versus waiting and missing out.

For example, you might end up selling when prices are lower, but then you are buying a new place when prices are lower too. Or vice versa. Or buying when rates are high, and refinancing when rates are lower. Or buying a property in a seller's market, and then buying another one a few years later in a buyer's market. Or ideally, always buying and never selling. :)

It tends to even out – AS LONG AS YOU ARE IN THE MARKET.

I know we are all stinging from the 2008 crash. But frankly, the only people who are losing now are the ones who are trying to time the market.

So, I don't think it's just a weird sales tactic to say it’s a good time to buy, I think it's reflective of the fact that it IS technically always good to buy… as long as it’s a payment that YOU can reasonably expect to pay over the next few years.

The reality is, it’s a good time when YOU are ready to take action!

What are your thoughts? Is it just a cheesy sales tactic to say it’s always a good time to buy?