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It's just a feeling, but I would guess we are at the tail end of the cycle of extreme price inflation for residential real estate. Mortgage rates are soaring, and affordability is tanking for all but the wealthiest segment of society. That has to play a role in future prices. I don't think I would have the stomach to buy in today's market.
We got lucky in that we bought both our first house in a recession, and then we traded up after the real estate meltdown of 2008. We waited long enough for the market to begin to recover so that we sold our first home for a reasonably good price into the early years of the RE recovery, and we purchased our current trade up home as a leftover foreclosure that remained unsold during the early years of the recovery. Purchase price was 1.3M in foreclosure, current value 9 years later is 3M. Part of this was luck, but part of it was timing the trade up by taking action when the right opportunity came along.
We got lucky in that we bought both our first house in a recession, and then we traded up after the real estate meltdown of 2008. We waited long enough for the market to begin to recover so that we sold our first home for a reasonably good price into the early years of the RE recovery, and we purchased our current trade up home as a leftover foreclosure that remained unsold during the early years of the recovery. Purchase price was 1.3M in foreclosure, current value 9 years later is 3M. Part of this was luck, but part of it was timing the trade up by taking action when the right opportunity came along.
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