The economy we are in right now is probably one of the best periods in history to buy real estate. Interest rates are at record lows, and prices for homes across the country are down. With a combination like this, you simply can't go wrong. Sure, if you buy a house today it won't go up in value much in the near future, and some people think prices may even go lower. But that is a gamble because no one really can predict where the economy will be in the future. How much lower can interest rates go? In 1982, rates were as high as 18%. Homeowners who are in the market to sell right now will give their best deal and won't let a buyer walk.
Real Estate will never go obsolete and will always increase in value over time. No matter what somebody paid for a house or investment property twenty years ago, even if he or she knowingly overpaid, has gone up in value. The key to making a profit in real estate is to hold on to it as long as you can, or sell at a profit when you can. Of course, financial circumstances and other considerations may cause you to sell a piece of property at a loss, but this article is focusing on the actual real property, not the financial or personal circumstances of the property owner.
If you purchased a property in a recent peak market, such as in 2007, and you sell now, chances are you made a loss (please note that certain markets may have actually gone up in value during this period, but these areas do not reflect general markets and only pertain to small, localized areas). The better alternative is to sell in the down market and buy in the same down market. You are selling low, but also buying low. You are transferring your asset from one to another. Then hold on to the new property and in the long run you will have realized capital appreciation. This scenario assumes you are not selling in the down market because you need to "cash out" or were financially forced to.
So if you are looking to buy a house or trade up, you are in one of the best markets and will do very well. Good Luck!
