Home › Forums › Members Forum › Could you let us know about averaging down opportunities, please, Sean › Reply To: Could you let us know about averaging down opportunities, please, Sean
No I don’t. But here’s what I know. When people’s 401k balances go down and their IRA balances go down, they feel poorer and they tend not to buy houses. And the opposite is also true. Therefore, by knowing what financial markets are doing, it’s helped me to navigate the housing market as well.
Home prices are very elevated again and when the stock market bubble pops, it may just very well take down the housing market with it because when people’s portfolio’s shrink and they don’t look as good on paper to a bank nor do they feel as secure, even if they could afford a house, so they tend to stay put or downsize but not move up. https://tradingeconomics.com/united-states/nahb-housing-market-index
I sold my lake house and bought and built a house that was half the price, partly due to these reasons.
Also, with Coronavirus, if you live in the city, you may have a harder time selling at “top dollar” than if you live in the suburbs which haven’t had quite as bad of restrictions. If you live in a Democrat controlled state, you may be hit harder with restrictions than a conservative state.