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Is Now a Good Time To Buy if Prices Go Down in the Future?

Tuesday, May 18, 2021   /   by Vyral Marketing

Is Now a Good Time To Buy if Prices Go Down in the Future?

Waiting for a market correction to buy might not actually cost less.

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Many people are asking if they should purchase a home if there's a coming price correction in the future. I’d like to discuss the ramifications of buying a home now even if there's a potential downturn in the market in the future. I’d also like to go through a little bit of a demonstration of what could happen with prices based on the current trends.

Over the last year, we've seen prices appreciate about 30% and many people are concerned if that continues then prices have a good probability of going down. Let's take a look at a scenario of somebody looking to buy a home for $400,000 right now. They may have been able to purchase that home for under $300,000 a year ago and feel like they're overpaying if the current trends continue. However, if an additional 30% appreciation occurs, they could be looking at the same house being valued at over $520,000 a year from now.

"You may say 'I'd love to buy when prices go down 10%,' but will you want to purchase if prices go up 40% in the next year?"

Let's say that at that point there was a correction. If there's a downturn of 10% at that point, the property that was $520,000 a year from now would then only be worth $470,000. If prices start to go back up again, would you rather purchase something now for $400,000 or be looking at a property that's worth $470,000 two years from now?

I think you can get an idea of what may happen currently with the way that homes are trending in prices. The appreciation rate is above 30%. It's possible that it will get above 40% over the next year. You may say “I'd love to buy when prices go down 10%” but will you want to purchase if prices go up 40% in the next year?

Every person’s situation is a little bit different, so feel free to reach out to me. I would love to chat about your buying needs and if you know anyone who is looking to purchase a home in the next couple of years. I'd like to discuss their situation and make sure that they are making the best-informed decision.


  buying a home

Elite Results Realty
Rob Hale
1744 S. Val Vista Dr Ste 206
Mesa, AZ 85204
480-845-0048

© 2021 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than Elite Results Realty are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. June 14, 2021
© 2021 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than Rob Hale - Elite Results Realty are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. June 14, 2021
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