wishbone Today's market is driven by low interest rates (people can afford more home) and demand exceeding supply. Plus there is a lot of cash on the sidelines. To be honest, we thought the market would slow in 2021, but I'm not sure its going to until the fed tightens there money supply.
True. There's an old saying in investing. "Don't fight the Fed." So as long as interest rates stay low the stock market will most likely continue to rise.
Similar story in real estate as long as the demand for housing is high. If inflation ever comes back and interest rates rise then assets like stocks and real estate will go the other way.
I'm old enough to remember the Fed Funds rate hit 21% in 1981 and 30 year mortgage rates were as high as 18%.
Trying to time any market is an exercise if futility. Comes down to luck.
Housing should be looked at thru the prism of shelter first and a long term investment. I'm no smarter than anyone else, but we basically paid off our home up north in 11 years. Took a 15 year mortgage at 9% and two years later refinanced to a 10 year loan at 7%.
Sold it 19 years ago and moved to sunny Florida. Bought our palatial Florida estate lol for cash and retired early. Our house is a 3 bedroom, 2 bath 1545 sq. ft, with a pool. It's all we need for the two of us and our four cats. 😸
Any advice I give to young people is this. You need two things to survive, food and shelter. Secure your housing and pay it off as soon as you can. Resist the temptation of using your home as an ATM. Oh, and live below your means. 😉
The house across the street from ours went on the market for $230,000. Sold in one day for $260,000. But unless you're downsizing any house you buy is going to cost more and your real estate taxes will go up.