Housing prices are reaching all time highs in many parts of the country, driven by high demand, low inventory, low mortgage interest rates and the sky rocketing cost of materials. At the same time, the stock market is at record levels. This all makes me very nervous. President Biden is proposing the highest taxes increases since 1993. If those tax increases go into effect, it will cause a slow down in the economy; though we are likely to have high inflation with all the new government monies going out into the system.
It is a great time to sell a house, but be careful about buying a home at very inflated prices. It ok, if your horizon is five to ten year out especially if you will need a mortgage to complete the deal. It is hard to pass up these very low mortgage rates. At some point, rates will go back up, which will moderate prices; but at the same time payments will go up.
As always buy location, location, location. If you buy crap, you will own crap. There are no bargains in real estate. Buy as much home as you can afford to grow into in it. Single family homes are better bets than condos in the long run unless a condo is all you can afford.
At Paragon Home Resources, we assist families with life decisions. We can help you sell your home for the highest price possible and get a good deal on the home you buy. Like everything in life, timing is everything.
