(source: http://springsrock.net/aaxymortgage/2017/10/31/is-it-a-good-time-to-buy/)
This is a hard question, but here is my opinion (please excuse my typos if there’s any).
Many people ask me this question, and think our real estate price is too high. They have claimed asset bubble for a few years, but so far the bubble still hasn’t bust and price keeps increasing.
Let’s take a look at the stock (also mutual fund) market. In 2015, I heard on radio that some “advisers” saying the stock had reached the top and would start to go down. Two years later the stock market continues to go up, even though we know one day it will turn to the other direction. The problem is when. If we buy now, we may buy at top price and lose money when market goes down; If we do not buy, we may lose the opportunity of growth. This is why it’s a tough choice.
As we have no “crystal ball” to foresee what will happen, most predictions are only “guesses”. The economy relies on too many items, so we’d better to have a strategy to deal with it.
First, let’s look at the history. The picture below shows the history of average price for a small area, which is around the first house I bought in US in 1996.
