This is the time of year when people put energy into changing their lives for the better. It’s no wonder that the most popular resolutions tend to be things like losing weight or cutting back on drinking – I’m looking at your Dryuary. The next biggest category of resolutions is a positive change in financial health. Taking care of credit card debt and curbing frivolous spending can surely get the momentum going in the right direction, but if you actually want to build some wealth, it’s essential to “get your money working for you.”
We’ve all heard the advice that owning your home is a surefire way to build wealth. Since everyone needs a place to live, the logic follows that owning real estate instead of renting changes your money game for the better. Easier said than done, right?
How do you know when the right time to buy is? 2022 was a crazy year with interest rates and recession talk. Isn’t right now the absolute WORST time to buy a house?
I’ll admit that it is very confusing out there if you’ve been thinking about buying a house! Depending on what news sources fill your feed, it’s either the absolute worst time to buy or it’s a great time to buy. Let’s break it down.
I did a quick internet search for news stories about buying a house, here is just a sampling of what headlines popped up:
- Looking to buy a house? It’s the worst time in decades to do so – Housing market is rapidly deteriorating amid rapidly rising mortgage rates
- High mortgage rates, recession fears: Who actually wants to buy a house in 2023?
- 44% of Consumers Are Delaying Home and Car Purchases. Should You?
- We’re in the second biggest home price correction of the post-WWII era—here’s the latest data
So how should someone navigate all this information? For many people (evidently 44%) it’s easier to just sit this one out and continue to rent.
Just like every meaningful resolution, changing your financial life for the better is going to take some effort and attention.
There are a few important concepts I want to start with:
- You are NOT a statistic
- How the news interprets real estate stats
- Life Changing Events require a shift in mindset
1. You are not a statistic
When you go past the headline in virtually every story in the media, they are basing the entire thrust of the article on big trends and statistics. For instance, take this quote from the Fortune.com article linked above: “On Tuesday, we learned that U.S. home prices as measured by the Case-Shiller National Home Price Index fell 0.3% in October. In total, U.S. home prices are down 2.4% since peaking in June.”
What does that even mean? Well, it’s taking all the homes in the entire country and analyzing them through the lens of a price index. Who is this suppose to help? Not the individual home buyer in my opinion. Because you don’t live in an imaginary aggregated city inside an imaginary aggregated home. You live in a specific place with a specific market. You don’t want any house, you want a certain type of house.
The real estate market in Kansas is so different from the market in Seattle, I think it should almost be a different category. Buying and selling is so different in those places, I think lumping them into the same article is a disservice to first time home buyers.
What you need is a customized strategy that provides a clear and attainable game plan to change your life for the better. Some people are ready to start shopping now, and for some it could take a while before they are ready to write their first offer. Just like with weight loss resolutions, you have to start where you are right now. Jump on the scale, acknowledge the number and work the plan.
Unlike the weight loss example though, many people don’t know what they don’t know. It’s relatively easy to observe “If I continue to eat an entire pizza in one sitting, I won’t see any real change.” Buying a house can be a lot more complicated. There are so many factors and strategies to consider, people need a teammate to help them succeed.
2. How “the news” interprets real estate stats
Spoiler alert – news outlets just want the clicks. They don’t care about you. More clicks equals more engagement. More engagement equals more advertising money. What gets clicks? Negative and scary headlines. The old cliché used to be “If it bleeds, it leads.” Now in the algorithm news era, outrage and fear are king.
There are virtually zero news stories with a headline “If you have a really solid game plan, you can accomplish your goal this year.” That will not get engagement on the site. It’s much more click baity to say “Let me tell you why now is the worst time ever!!!”
My point is that if you actually want meaningful positive change in your life, basing your decisions on news stories is not going to work. You can always find a negative headline to lead you to not starting.
3. Life Changing Events require a shift in mindset
Intuitively, we all know this is true. If you keep doing exactly what you’re doing now, you will have the same thing you have right now.
If you have been day dreaming about owning your home instead of renting, it will require you to think about things differently.
One of the biggest things that comes up over and over in our interactions with people is the idea of permission. Giving yourself permission to become a home owner. Begin to look thru the lens of what you can do instead of fixating on the obstacles that lie ahead. Before you gloss over this sentence, I invite you to pause for a moment and really think about it. How do you talk to yourself? Do you give yourself permission to pursue new things or do you consistently cut yourself down and find reasons why you’re going to fail? Simply changing that story to “I am going to do this!” can be one of the most important steps.
Progress is exciting. Positive momentum feels really good. Accomplishing a goal that really does make your situation better is truly life changing.
Experts say around resolution time that if you really want to succeed you need to make your goal attainable, write it down and share it with someone who cares about you.
Don and I are all about being life changing agents. That is why we put together this event to show you the power of becoming an owner of real estate. It has changed both of our lives and we want to show you how it can change your life for the better.
If you’re ready to change your life, schedule a Sit Down with us today!