LIFE LESSON 126 WHEN YOU’RE UP, YOU’RE UP!
A long time ago I learned a very valuable lesson from my uncle, greed is the contributor to the collapse of a good thing.
While watching the real estate prices increase in 2005, I wondered how many people had remorse selling before the surge. One day, I was having a conversation with my uncle, who had sold his North Jersey home a few years prior, I asked; Do you ever regret selling when you did? His reply, “When you’re up, you’re up!” That one statement has been a contributing element to some very solid decisions for me. Keeping the emotion and greed out of transaction is the key to seamless and profitable results. With that in mind let’s look at the North Jersey market.
This January and February were strong in terms of buyer presence and homes entering the market in the “not so typical” winter months. Largely this occurred as a result of mild temperatures and perhaps homeowners understanding that winter months could be the best time to yield the highest profit.
Spring 2016 is projected to be very stable with a slight escalation in pricing. Threats of interest rates rising will slow these increases a bit but not enough to deter buyers for now. According to Yale economist Robert Shiller, average prices are back to where they were in 2004 – a year most would consider to be the beginning of the last housing bubble.
The question becomes this; If average income is stable and void of increase, is it then logical that prices could rise exponentially? (especially if interest rates are expected to climb)
I read recently that a San Fransisco Federal Credit Union promoted a no-money-down mortgage with an adjustable rate and no PMI, sound familiar? Is this not the exact situation that lead us down the last path of economic turmoil?
If you are a baby boomer and have been waiting to cash in, now just might be the time to pass the torch. The very place you’ve called home might just be yearning for a millennial family looking for the perfect community to set roots in, just like you did a mere few decades ago. Why you ask? Because when you’re up, you are up!