Is it possible to time the real estate market? Unfortunately, it’s simply not possible to know what is going to happen until it already has. But there is good news.
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If you’re a buyer or seller in Seattle and are trying to predict the market, stop it right now.
You absolutely cannot predict the real estate market or what it’s going to do. It simply isn’t possible. There is no way to know whether things will go up or down in the market until they actually do so.
What I can tell you is that if you buy real estate and hold onto it for a long time, you will see some appreciation and equity growth.
For example, imagine that you bought a home in 1984 for $80,000, which was then the median sales price. If you held onto that home until February 2012, which was the bottom of our market here in King County, you would have seen some serious equity growth. The median sales price in 2012 was $308,000.
Compared to how things were decades ago, this is still massive growth—even considering that 2012 was one of the worst markets we’ve ever seen.
If you managed to weather the foreclosure crisis that was going on back then and still own that same home today, you would find an even more significant growth. In July of this year, the median sales price was $658,000.
All of this adds up to some major equity and appreciation. Also, if you were on a 30-year fixed rate mortgage in this scenario, your home would already be paid off.
Holding onto your real estate in the long term can lead to a big win.
I know there are a lot of steps in any real estate transaction, but I would love to advise you through the process.
If you are interested in my help, have any other questions, or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.