Many people ask me to discuss how to time the market.  As is our human nature, everyone wants to feel that they got the best deal they could possibly get.  The majority of buyers/sellers feel that the best way to do that is by timing the market.  This is most commonly felt in real estate, and stocks. 

The fact is, there are even careers that deal directly with this.  When you want to buy stocks, most people go through a broker, and use their expert advice to help them make decisions based on “timing” and specific stock performance. 

The funny thing is, most stock analyst will tell you that there is no “sure fire” way to predict any specific stock’s performance.  They can make educated guesses(based off of past performance and trends), but no way to make a for sure prediction.  If they could, you would see alot more people in the market getting rich. 

The fact is, stocks and real estate are alot alike.  It’s more of a long term investment that yields the benefit, not quick money.  If you are looking for quick money, in most cases, you are just as well off going to Vegas(yahtzee).

 When I hear of potential buyers/sellers holding out because they are trying to time the market, I find it very amusing.  Don’t get me wrong, there are sure fire ways of knowing if it is a not so good time to buy/sell, by knowing if we are in a buyer’s or seller’s market(which is determined by months of inventory, less than 5 months = seller’s market, more than 7 months = buyer’s market), and getting with a REALTOR who can advise you on what your home could sell for.  But when you really get down to the nitty gritty, and expect to know what the market will be doing in the next 6 months, you might as well get out a crystal ball, and start gazing. 

 The fact is, no one knows where the top or the bottom is.  Actually, I will correct myself, EVERYONE knows where the top and bottom is, only the downside is that they know after it has already turned.  Think of it this way; If I began drawing on a chalkboard from left to right, showing a downward line(representing the market going down), at what point would you know I was going to stop going down, and turn to start going up?  Unless you have some mental powers and could read my mind, you would have clue where the bottom is.  However the second I turn to go up, you when then see that we have just passed the bottom, and if you are aware of how curves work, the bottom is a faster transition than the way down or up.  What I mean is that when you make the turn on the bottom, it speeds up through the turn, so after you realized it has turned, you are already quite a way up on the other side. 

 It is not always beneficial to try to time the market, unless you are an investor with a good deal of money to spend, and can take chances.  Real Estate should not be purchased for quick money, it’s a long term investment.  If you are looking to buy/sell your home, for reasons that matter to you, consult with your REALTOR(to see what you may be able to purchase in your budget, or what your home could sell for), then determine if it’s the right time for you.

 If you have any particular questions you would like answered, please feel free to contact me, or comment here, and I will do my best to answer them for you.