We as humans have a hard time predicting the future. We definitely are very good at analyzing the past, and we beat ourselves up all the time about the deal that we didn’t buy ten years ago.
How do you think the future is going to look in 2032? The deals that you’re buying now, do you think that you’re going to be proud that you bought them or do you think that you’re going to be kicking yourself?
If you look at trends of real estate growth, I think that you’re going to be pretty happy with all of the moves that you made in 2022.
So, think about your future self, think about what you’re buying now, and consider the past of the deals that you didn’t buy. Don’t make the same mistake twice!
Additionally, what data should you look to when making real estate projections?
One of the things that I always pay attention to is where inventory levels are at. That gives you a very good pulse of buyer and seller sentiment.
You can tell how fast buyers are purchasing homes on the market right now and if you take a look at a ten year or twenty year time horizon of inventory levels, you can see how fast these rise and fall, therefore giving yourself that worst-case scenario picture of how long it’ll take to get from where we are right now to get to a point where the market is potentially at a bubble.
Take a look at those graphs, take a look at those charts, and make some of your own predictions.
The way that I see it, we have years of low inventory until we get to a point where we’re potentially at a bubble, where our market could make a correction.
And even if we do get to a point of high inventory, generally the real estate market does not take a dive like we saw in ‘07, ‘08. Actually, history shows us that it usually just kind of plateaus for a few years, before it continues its growth upward.
Go out there, take a look at your local MLS stats. There’s a lot of really good information for you to form an opinion of what’s going on in the real estate world in your market.