I have been seeing this a lot lately on the private forum that I host each week. Click here to join. People so afraid of missing their opportunity to buy, that they are looking to buy right now when prices have went down by a few thousand dollars. I keep trying to explain we are in month three of a national shutdown. People are still getting federal and state unemployment, and businesses still have hope they can rebound from this. In other words, this is just the very beginning. Very few people have felt the economic pain yet, and until that happens the market won’t even begin to significantly decline.
As my motto of late has been “Don’t catch a falling knife.” Essentially meaning don’t buy while prices are still going down. Even though I say that often, I still get people nervously asking, “When will I know the right time to buy?” Everyone is so concerned they are going to miss something. It’s as though they think they have a thirty day window to get a good deal once the time is right.
I don’t know how to best explain this except by saying, “I never try and time the height of the market and I certainly don’t time the market low.” I can promise you this, if you are patient you won’t “miss out.” The last recession in 2008 real estate prices went down for years before they hit the bottom in 2011. That was three years of falling prices. That is what I would have called the “falling knife period.” After 2011 they slowly climbed back up, but even if you bought in 2012, 2013, even 2014 you probably got a really good deal.
Market bubbles deflate slowly, and they rise back up slowly after their decline. So don’t feel the pressure or rush to buy. Don’t have fear of missing out. You will have a big window to buy when the time is right. I also will let you know my thoughts along the way as the market corrects over the next few months or even years.
Talk to you soon,