There have been many recent articles and graphs about real estate bubbles, and whether we are in one. Maybe the question should be: Where do I want to live? Can I afford what I want? That seems to be the way the argument goes when people are deciding about travel (cars really expensive, gas at very high prices, vacation homes in demand), dining out (where's the hot new place, why should I cook when I'm tired and hungry, we deserve a treat after two years in limbo), and home renovations (waits for contractors, steep increases in the price of materials, back-ordered furniture). Why would people suddenly decide that they should cut back because of price increases in the area that matters most?
Pricey stocks vs. pricey homes
To put those high current prices in context, our region of Connecticut has lagged for years, even decades, in price appreciation for real estate. Couldn't some of the increase be attributed to catching up? Furthermore, high stock prices don't seem to stop folks from playing the stock market. One might suppose that buying real estate after a rise in prices would still make sense, especially considering other choices for investing one's money. Pricey stocks vs. pricey homes. Which one can you see, touch, and enjoy? That's right. Buying the home of your dreams is a perfectly good way to honor your desires in a way that improves your life every day. If you can afford it, you will most likely be glad that you took the plunge.
The pandemic has caused many to make major life changes, sometimes from necessity, but often from thinking deeply about what matters. Home matters. In the midst of the greatest transfer of generational wealth ever, many can afford to live in the place of their dreams. Timing is important, but it isn't everything. If 2022 is the year that you want to put down roots, or new roots, then that's the time to go for it. If you travel to make memories, think how many more you can make in a place you spend so much of your life. In another winter of hibernation, loving where you live can make a big difference in your happiness. And we all know now that we should reach for happiness whenever and wherever we can.