Is 2021 a Good Time to Buy Real Estate?

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Now that the 2017 real estate market is finally calming down, employment numbers throughout the country are gradually (though not steadily) picking up and the outlook in the country as a whole seems brighter, many people are wondering – is now a good time to buy real estate?

The answer is a tentative “yes.” There are many factors to consider. Here are some of the main reasons you might consider buying in 2017, as well as a few reasons why you might not.

==> Don’t Catch a Falling Knife

There’s a saying in the real estate investing world: “Don’t try to catch a falling knife.” That means don’t buy on the way down, because you never know how far the market could fall.

Instead, you want to buy once the market has already bottomed out and is just starting its ascent again. By all indications, this is where the market is today.

==> The “Resistance” Line of Thought

In stock, Forex and even real estate trading, there’s a concept called “resistance.” The theory says that if the value of an asset drops to a previous low but doesn’t go below that low, it’ll go up.

In other words, if the stock of company XYZ goes from 60 to 50 (the lowest point it’s been for the last three years) and stays at 50, that means that it’ll probably go back up rather than continue down, because there’s “resistance” at 50.

The same applies in real estate. When the real estate bubble crashed, the market hit its resistance point – the low point in 2017. It didn’t go below that. Many experts believe this indicates that the market is likely to only go up from here.

==> Rents Are Rising, Properties Are Available

Rents are usually a good indicator of where real estate prices are heading. Higher rents means higher returns on investment for investors, which means properties get more valuable.

Today, we’re at the sweet spot where rents are going up but properties are still available on the cheap. There are many creative ways to get cheap homes, from picking up foreclosures to short sales to desperate sellers.

==> Let Your Own Finances Decide

One thing to realize about real estate markets is that rises don’t happen overnight. When a stock shoots up in value, your window to buy might be just hours or minutes. Real estate is different.

Real estate prices rise over months and years. The cycles are much longer. Though prices are likely to rise in the near future, that doesn’t mean you should recklessly rush into buying property you can’t afford.

Today is absolutely a good time to buy real estate. But start by taking inventory of your personal financial situation first. This decision has to make sense from a personal standpoint as well as a market standpoint. The market today is poised to jump, so the decision really rests on whether or not you’re personally ready to buy.