Waiting for the Bottom

Many folks are waiting, trying to perfectly time the real estate bottom.  Perhaps, one morning, the Honolulu Advertiser headlines will read “THE BOTTOM IS HERE:  NOW IS THE TIME TO BUY”.  Perhaps not.  By the time that announcement comes, the bottom will have come and gone.  You can only be sure of the bottom well after it’s already occurred.

A great analogy to the bottom of the real estate market is a yo-yo.  Take a yo-yo in your hand and use it.  Can a person grab the yo-yo at the exact moment it hits bottom every time?  Chances are a person will grab it just before it hits bottom or just after; rarely at the exact bottom.  Real estate works the same way.  If people knew the exact time to buy stocks, real estate or any other investment, no one would ever have a financial worry.

For those who believe that real estate is a good way to attain wealth, now is a reasonable time to buy.  Interest rates  won’t be low forever and each 1/2% increase in rate reduces your purchasing power by 5%.  Mortgage rates have been low for quite some time, but they can change quickly.  Don’t look back at this time and say to yourself, “if only I had bought then.”