Might it be time to consider residential real estate as an asset class in which to invest? The stock market is not doing well, interest rates on bank accounts are still low, and even bit coin has suffered. Will your home be your safest investment?
Safe and Tangible Investment
It's certainly looking that way right now. We in the business have always advocated for real estate as a safe and tangible investment. Right at the moment, many people should be thinking that way. If you have been holding back from buying a home, due to interest rates--which are still very affordable by historical standards--or rising prices--again, Connecticut has lagged behind the rest of the country, and even our current higher prices are often relatively low--this is the point at which you should reconsider.
Long Term Investment
Even if you feel that your desired home is too expensive, try to think about it in a longer-term way. When you factor in inflation, the time value of money, the replacement of rent, and the potential for future value, it will be easier to ignore the voice that tells you that it would have been cheaper if you had bought it two years ago. True, but not helpful or relevant now. It's the opposite of what economists call a sunk cost, or that amount that has already been spent and should not influence future action. This is a lost opportunity cost, and should also not be factored into a future decision. It's still a good time to buy, and now that competition has abated, it may be much more possible to be in your new home by winter. Don't continue to sit on the fence--jump in while you can.