When you already own a home, selling it often funds your next purchase. If you’re a “move-up” buyer looking to upgrade in a down market, you’ll likely need to sell your current home. Timing becomes critical to avoid short-term housing or rent-back situations due to mismatched closing dates. Working closely with your Realtor® and lender and staying updated on the process ensures a smooth transition.
Interestingly, selling in a “hot” market means buying in the same competitive environment, often paying a premium. However, some areas rebound faster than others. You might sell high in a high-demand area and buy at a lower price in a less competitive one, even within the same county.
Economic patterns fluctuate over time, and waiting years to buy a home can mean missing out on substantial equity and appreciation. Long-term rent payments also represent money you’ll never get back.
The subprime mortgage crisis of 2007-2009 was the worst global recession since WWII. The U.S. National Bureau of Economic Research cites multiple causes, including:
- A bank run on the shadow banking system, disrupting credit flow.
- A housing bubble burst, reducing residential investment and consumption.
- Record household debt leading to a balance sheet recession.
- Government policies promoting homeownership for those who couldn’t afford it, causing lax lending and unsustainable prices.
By 2015, “boomerang” buyers began re-entering the market after short sales or foreclosures, leading to a predicted rise in home sales and a cooling rental market.
Today’s buyers should form alliances with their lenders, run credit reports, understand their financial standing, and qualify for homeownership programs. Cleaning up past financial mishaps and following a diligent plan makes homeownership achievable.
In conclusion, waiting to buy a home can result in lost opportunities and financial growth. Aligning with professionals and understanding your market position can turn your homeownership dreams into reality. Don’t delay – the right time to buy is now.
