INDUSTRY

How To: Time The Market

⏲️ We all know the answer to this: You really cannot time the market. What you can do is understand and teach that home appreciation is constant.

There will be ebbs and flows for rates. Financial, socioeconomic, and political events may all affect rates.

If you have a potential client that is waiting to “time the market,” here are some questions to ask:

• When was the last optimal time to buy?

  Verify my mortgage eligibility (Oct 3rd, 2023)

  • 2011-2012 + 2020-2021 were some of the “best times” to buy over the last 10-13 years, partly because of prices, partly because of VERY cheap money. We will not see either anytime soon, and we cannot accurately predict another window like this. If I could, I would be on a beach somewhere with a fruity drink in my hand.

• How many other people have the same line of thinking as you do?

  • It may be time to Zig when everyone else is Zagging.

    Verify my mortgage eligibility (Oct 3rd, 2023)

• Have you applied your timing logic to the stock market?

  • “Yes” – Fantastic. How much have you made over the years, and how do you anticipate these moves?

  • “No” – Why not? There have been plenty of opportunities to buy simple index funds and make a tidy return over the last decade.

    Verify my mortgage eligibility (Oct 3rd, 2023)

I have mentioned this in the newsletter, but it is always worth repeating. With hindsight and knowing what you know now about the following topics:

• Supply and demand

• Rates

  Verify my mortgage eligibility (Oct 3rd, 2023)

• Inflation

• Housing Prices

“If you could have bought a home five years ago, would you have?

And what will you be asking yourself five years from now?”