At last someone in the media who understands how real estate (and investing) works! This is not your typical, “scary, sky-is-falling” article (because why would the media report on good news articles, they don’t sell many magazines) — but, finally, a reporter who uses reason and logic to analyze the buying and selling of real estate. Props to Adam O’Donnell for turning me on to this article.
From TIME magazine, here’s the article.
For any buyer, these should be the key takeaways:
Ignore the headlines
“There’s rarely been a moment in history when you couldn’t scare yourself into doing nothing”
“When prices are falling, few people have the discipline to buy stocks, a house, gold, art, or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, “The way to make money is to buy when blood is running in the streets”
“It’s time to get serious – before an inevitable rise in interest rates wipes out your advantage. The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher. So anything you gain by a further drop in prices might be offset by rising financing costs. … in other words, if you wait one year to buy, and the interest rates go up even ½ percent, you would have saved nothing.