Is it Possible to Time the Market?
The cat’s out of the bag, so they say!
Considering how so few buyers showed up last year (compared to years past), my San Francisco Realtor Community and I spent the holidays wondering what January 2023 would look like? Would it look like December 2022 with so few buyers out there touring that amazing deals were to be had, or would it look like January 2022 when buyers woke up, decided they just had to have a new home, and squeeze a low inventory part of the selling season?
Well, guess what, it’s looking a lot like January 2022. Buyers are showing up in droves, open houses are packed once again, and properties that sat on the market and were pulled before the end of the year are now moving quickly off the market just as they are put back on the market.
And so that begs the question, how do you time the market?
Let me tell you straight up! It’s near impossible to time the market, unless you are Marty McFly and have hopped into “Doc” Brown’s DeLorean.
In all seriousness, yes, there were buyers and sellers that entered and subsequently exited the market and their properties exceeded sales expectations. But the reality is, the decision to buy or sell was more than likely all about life cycle timing for them. Perhaps they had a job transfer, they outgrew their space, or another important life cycle event triggered the need for a change.
Timing the market is really all about purchasing and or selling based on the needs in your life AND affordability for you. That’s it! It’s that simple. Just think about how the historically low interest rates of last year made purchasing a home so affordable for so many people, and in turn was an incredible time to be a seller. If your lifecycle events happened to align with the good times, then consider yourself very lucky, my friend!
So to those who are wondering if they should buy or if they should sell in this market, I want you to ask yourself if the timing is right for you. Are you ready to upsize, are you ready to downsize, have you taken a new job, do you need a second home, do you want more outdoor space, do you want to be closer to a city center, do you have the finances to make that big move?
In San Francisco, I always tell my buyer clients that if they can hold on to a property for at least five to seven years, they should be able to see some nice appreciation when making their next big move.
And that my friends, is how you time the market!
