Over the last couple of months, we have tried to take the fear out of the unknown that comes with home buying. This is particularly true for first-time home buyers.
We want to conclude this series with just a few more thoughts that we hope will help you to determine that this is the right time to make a purchase.
While there may be other fears or unknown factors that we have not addressed, We think we would be remiss if we missed this last one.
What if the market crashes? In other words, what if my house is not worth the same amount a few years down the road?
This is a legitimate concern because we have all read the newspaper, watched the news, or had a friend that went upside down maybe in the last recession that pummeled America back in 2007-2009.
Statistically, Cheyenne has been and remains a strong market. This does NOT mean that we cannot experience a severe recession that sends our housing prices down the tubes. It also does NOT mean that supply and demand will not change the prices either up or down drastically over the next few years. Yes, these things can happen.
We are in a unique market that sees steady growth from new companies expanding and even the addition of military personnel at F.E. Warren Air Force Base. These two factors alone have kept us fairly steady in an upward trend for several decades. It is a trend that seems to look promising for the future.
However, there is still a factor to consider. Back when the stock market crashed back in 1929, there were many millions of dollars that were lost. The real reason people lost millions is because they panicked and sold at the best price they could get.
In the most recent housing plunge almost 10 years ago, there were some who went bankrupt and lost their home. Yet, some were also willing to do a short sale on their home because they felt they were fully upside down on their mortgage. Essentially, many people panicked and sold for what they could get. The reality is that housing markets go up and they also go down.
If you were in a home and making your payments, the ONLY way you can say that you lost money on the property is IF you tried to sell your home. If you are still living in the house and making your payments, you have not lost. The home is still yours. The price you paid may not be reflected in current value, but over time that will normally change.
Ultimately, YOU are the one in charge of what happens. YOU have to choose the mortgage team you want. YOU have to choose the realtor you wish to work with. YOU have to determine how much you are willing to pay. YOU have to conclude that money in your own house is better than rent in somebody else’s house.