I’m asked that question a lot lately and there is no one answer fits all. Every sale is personal. Everyone’s needs and wants are different. I tell people if you’re retiring and need money then by all means sell now, especially if the home is your only real equity. Some of these people own homes that doubled their value in the last 2 years, why gamble your future at this stage in your life.
When they say real estate is local they must have been using Brooklyn as its focal point. Brooklyn NY is the 5th largest city in the country, it has over 50 zip codes and each area is different in its own way. Some 2 family homes in Bensonhurst and Sunset Park are selling for over a Million Dollars while homes in Park Slope are commanding over Two Million Dollars and now competing with Brooklyn Heights. Activity in the Sheepshead Bay and Marine Park areas are exploding, and with the addition of the Barclays Center the Downtown area is really booming.
But you have to think as an individual and do what’s right for you and your family. I try to explain to people you can’t time the real estate market; it’s not a stock or ETF that’s liquid. But there are some subtle hints that can give you a clue to where it’s going.
I see interest rates rising and as they rise, so does the Affordability Index for people who want to buy.
I see banks who foreclosed on homes, but never forced the owners out (what were they going to do with the home, the housing market was going down, plus they knew by letting them live there they wouldn’t destroy it) now forcing them out as prices are high.
I see those cash buyers who bought blocks of homes and rented them, now selling them with great profits. This also puts more inventory on the market.
As I stated the sale of a home is not liquid as a stock sale where you get your money in days. So you have to plan ahead and know it might take months to get the sale if your decision to sell is too late.
