Those of you on the sidelines

[Shiloh Lundahl]

I remember hearing people in 2017 and 2018 saying that they were going to wait on the sidelines until it was a good time to buy again. We all know that properties kept going up until mid 2022. Then in 2022 that said that they were going to definitely wait because it was a bad time to buy.

My question is, when is a good time to buy? And how will you recognize it? And if you recognize it is a good time to buy won’t everyone else see that it is a good time to buy too and then jump into the market and drive prices up?

[Nathan Gesner]

Quote from @Shiloh Lundahl:

This mistake is in thinking one can time the market. 2012 was a better time to invest than 2019, and 2019 was better than 2024. However, there are good deals in both markets.

The key is to know your numbers and what makes a good investment. You can find more good deals in 2012, so you buy as much as you can. When things are difficult in 2024, you buy less, but you are still looking.

I like the analogy of a runner. Many started off in 2010 - 2019 with downhill terrain and the wind at their back. Running was easy! In 2020, the ground leveled out, then quickly shifted to hilly terrain. By 2024, they were on a steep hill with the wind in their faces. So what should they do? Many decided it's too hard, so they sat down under a tree and whined about not making any progress. Some kept running and their momentum is pushing them forward. Some slowed to a walk.

When the terrain or wind shifts back into everyone's favor, those sitting on the sidelines will have to recognize the change, then get back on the road. They'll spend a lot of time warning up and getting back into the groove. Those that stayed in the race, whether running or walking, will feel the shift immediately and will be miles ahead of those that chose to sit it out.