Do you know the perfect time to buy a house? Ten years ago.
Do you know the second-best time to buy a house? Now!
Sure, rates are up, but that means less competition that will likely allow you to negotiate with the seller. And when rates come back down, you can refinance and save on your monthly payments. But like any other long-term investment, the reason to buy today is your belief that the value will increase over time.
So where is the housing market going over the next five years? Over the last 40 years, California has seen an average yearly increase of 6.5% in real estate. If that percentage held over the next five years, what would it look like?
2023 Buy property for $1,000,000
2024 Value increases by 6.5% after one year Now worth $1,065,000
2025 Value increases by another 6.5% Now worth $1,134,000
2026 Value increases by another 6.5% Now worth $1,208,000
2027 Value increases by another 6.5% Now worth $1,286,000
2028 Value increases by another 6.5% Now worth $1,370,000
In 5 years, the value of the home has increased by 37%. Now that is an investment I can get on board with.
