It’s a Buyers Market, and Buyers are Scared

For two years people wailed and moaned about how hard it was to buy a property. Now that the market has slowed, buyers have decided to sit on the sidelines. Like investors who buy a stock at the high and then ride it down to zero, buyers are waiting for a signal. The market is screaming that now is the time to buy.

You want to buy when you can get a decent purchase. Starting in mid 2021, the real estate market got so crazy that every home would get multiple offers and sold prices took off faster than you can say “Inflation is the crabgrass in your savings”. Now you can find a home and make an offer below list price and get it.

The time to buy a home is when you can afford it and when you need it. Waiting for the perfect time is like watching bananas ripen; green, green, green...mushy brown mess. You can’t time it right so you need to move forward once you have the down payment and can afford the overall payment. Waiting for a better time might cost you thousands in lost equity as you rent and sit on the sidelines. Over the long haul real estate always goes up.

In 2006 the average home price in Dripping Springs was just under $350,000. When the market crashed in 2007 those prices dipped below $300,000 but then quickly started rising again in 2009. Now the average home sale price is well over $1,000,000. Even if you had bought at the height of the market in 2007 those same houses are now worth 3 times what you would have paid for them.

If you have to buy at a higher interest rate go with a fixed rate and then plan to refinance once rates go down again. Never do adjustable rate mortgages in a time of rising rates as you could see a huge increase in your payment once your rate adjusts.

You will never regret being invested in a well built home in a nice area. Your money will grow and your equity will increase. This is the same for investors and for owner occupied homes.

The path to wealth is most often taken by way of owning real estate. Since man first congregated into tribes and villages, human beings have had a desire to control the area they live in. Whether it is a cave in the hills or a house at the lake, you’ll own something of value that will grow and help you prosper. Don’t be foolish and wait, when now is the best time to be a buyer.

Steve Mallett is the owner of The Mallett Integrity Team of Real Estate Specialists and the Mallett and Michelle on Dripping Springs Podcast. Reach him at [email protected]