With an uncertain future, a decision to buy a home should be based on preference and not potential profits

  • Date: 06-Sep-2021
  • Source: Washington Post
  • Sector:Financial Markets
  • Country:Gulf
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With an uncertain future, a decision to buy a home should be based on preference and not potential profits

Q: The way the real estate market is going, if my husband and I sell our house, we will more than likely sell high and be buying high, making it a “wash.” I know that no one can predict the future, but if we are buying high this year, do you think that we will get our money back on the “new” house in eight to 10 years?

A: No one we know can truly predict the future of real estate. Real estate economists have been predicting that mortgage interest rates will hit 5 percent for a 30-year fixed rate mortgage since 2012 — and we’re still waiting, which is good news for the millions of home buyers and owners who have purchased or refinanced with some of the lowest interest rates in history over the past couple of years, in particular.

Still, you’re right. If you stay in the same neighborhood, you tend to sell high and buy high or sell low and buy low. If you switch neighborhoods or if you sell a totally redone home and buy a small fixer-upper, you can often make that work in your favor.