Home values historically increase 30-60% per decade, so holding property long-term builds wealth despite market ups and downs. The speaker argues buyers shouldn't try to time the market but focus on staying in their homes.
The last few years have seen home buyers really be more particular on when they want to purchase a home. And a lot of that's due to the wild fluctuations of home values and interest rates. But I think if we turn to some of the great financial advisors, we could learn quite a bit here. They preach it's not about timing the market, it's about time in the market. And they're referring to stocks which go up and down in value. But if you buy and hold, they go up at about 10% year over year over the course of time. Similar in the real estate world. I went back to 1950 and every single decade since then, home values have went up between 30% and 60% every 10 years. Most notably was probably the 2000s decade with the real estate collapse. Home values still went up 45% during that 10 year stretch. So what I'm saying is you never are going to know if you bought the home on the exact perfect day. We can preach and give you all the advice possible. I look at every metric out there, but still there's the unpredictable. The one thing you can guarantee is if you buy a home and hold on to it, you're going to be way, way further ahead over any stretch of time. And that's the lesson for today.
