Nobody has a crystal ball. There is no way to know if you are at the top or the bottom of the market. My advice to clients is this: Time in the market beats timing the market. Always do what makes sense for you financially. If you wait until a crash you may not have a job or the capital available to capitalize on the real estate market. You may also be waiting for years while you could have been building equity.

The average consumer will stay in their house for several years and in doing so they build equity. When a homeowner looks to sell, they will likely get money back. When you are renting and your lease ends, you will be lucky to get your security deposit back. 100% of monthly payments for rentals are gone whereas with a mortgage you build equity. As time goes on, you pay less on interest allowing more equity to be built.

Categories: Buying, Selling