How do I time the real estate market?

Buy low. Sell high.

That's what we want to be doing right when buying and selling stocks and real estate. So then the question becomes that in a declining market like what we're experiencing these days when will I know that the market has bottomed out?

Well I'm going to answer that question for you.

You probably heard a lot of people talking about the recession. The recession, the recession, the recession. “It will make all these house prices drop hard and when that happens I'm gonna jump in with all the money that I've got saved up and I'm gonna get a great deal.”

Okay, fair.

But then the question still remains: when will you know that that has happened?

Well a recession in itself is actually a lagging indicator, which means you have to have two consecutive quarters of negative GDP growth.

Well that's six months. So in those six months you could have bought and everything would have been fine. But it's actually completely possible that by the time that recession is declared, the market has already started going back up.

So we missed it. We missed the bottom. We were trying to time the market, which is really no different from gambling.

You might get lucky here and there but more often than not you're gonna lose. It's less about timing the market and more about time in the market.

You know I always say this: find me somebody that regrets buying real estate 5+ years ago. You won't you won't be able to find them.

Now to come back to the question that we asked at the beginning, when do you know the market has bottomed out? Like you, nobody knows. Nobody knows the future.

I know there's going to be a few of you that are going to disagree with me and try to time the market anyway. That’s okay! You're gonna be wrong but that's okay, what’s the internet without a little disagreement between pals?