Sell a Home During a Housing Bubble?
Older Americans can look back on periods of time when real estate prices were high, and other times when housing prices plummeted. Home prices have fluctuated in the past and history shows they will very likely fluctuate again in the future, so that’s why many homeowners want to sell during a housing bubble.
Investopedia says, “…. a bubble occurs when particular investments are bid up to prices that are far too high to be sustainable in the long run.”
Historically, a housing bubble is caused by too many buyers and too few properties for them to buy, usually experienced in specific areas of the country. It’s not uncommon for a housing bubble or boom to occur where a huge number of new jobs are available, so hundreds or thousands of people are moving into the same area for those jobs.
Another reason housing bubbles have occurred in the past is connected to financial inflation or deflation in the economy, or how much purchasing power a dollar has compared to other recent periods of time.
Naturally, it is better to sell during a housing bubble when the prices of houses are high. That makes sense. Sellers generally want to get the most money possible when they sell their home.
Market Timing is Not Easy
In the stock market, it’s called market timing. That’s how buyers and sellers of stocks and bonds attempt to make a profit by knowing whether the stock market is in an upswing or a downswing. They must get their timing right to come out ahead. But profitable market timing is not easy to achieve.
In a housing bubble it’s similar because home sellers want to feel certain that they are selling for the highest possible price when they are ready to sell their home. But sometimes the need to sell doesn’t match up with the highest market prices in a housing bubble.
Sellers may have to sell for other reasons, leaving potential profits on the table because their need to sell didn’t coincide with the height of home sales prices in their local area.
If You Didn’t Sell a Home During the Housing Bubble
If the highest point in the housing market has come and gone, and you still need to sell a home now, you can list your home with a real estate broker or sell it by owner. Those are two of your options. But you have another option to sell your house without all the costs associated with paying a real estate broker to handle your home sale, or a title company to close your by-owner transaction.
A professional buyer at We Pay Fast is available to give you an offer and to close your sale transaction quickly, with no real estate commission or fees to you. Just call (405) 521-1807 or email us at info@wepayfast.com to learn about another option to sell a home.