I’m that guy that was an idiot and sold my house in 2019 when the market was at an all time high where I live in Southern Utah and had decided that it was a good time to sell. We had a 4900sq/ft custom built home and our 2 oldest had just moved out so it left us with 1 kid at home. I talked my wife into selling because it seemed like we were due for a correction in my mind since it had been over 10 years since the last dip and we never planned on retiring in this home. Also with only 1 son at hike we didn’t need a hike the size of what we were living in. We had planned on buying property after we rented for a year or so and building our next home that would take us into retirement and live in until we die. So we ended up selling for $570k which at that time seemed like a ton since we had bought it 9 years earlier for $350k. Used some of the equity to pay off all our debt so we were debt free and kept a nice chunk of money in the bank. Now we have literally priced ourselves out of the market where we live and this is we’re we want to retire. Our house would have easily sold for a million right now. That’s over $400k that we have lost by selling. I’m so sick about how this has all worked out and not even sure what to think or do anymore. I make a great 6 figure salary but can’t imagine what people do to afford these $700k + mortgages. Are people in serious debt or is the rest of the country just making more money than I can even imagine. Talking to the realtors around here they are saying that many of the people buying the homes where we live in St. George are buying them as second homes and many paying cash. That’s just crazy. Also they say these are well qualified loans and have income to pay the mortgages unlike the 2008 housing crisis where they gave anyone a loan even without income verification.
What’s the end game here. Are these high prices here to stay (new normal) or is something catastrophic gonna happen or will there just be a small dip in real estate? I don’t know what or who to believe anymore. All I know is I’m always second guessing myself for selling but on the other hand happy I’m 100% debt free. My biggest concern is I had planned on retiring in 5 years. (Age 55). Now not owning a home I know that’s most likely a pipe dream and not gonna happen. I can’t go into retirement with a $3k a month mortgage. What are your thoughts. Should I buy now or wait it out at this point? My next home will be my forever home more than likely.
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The mistake you made was trying to time the market, based off of a time period. The thing you say about home prices are all correct, they are high, they may come down, they may go up. Who knows. What matters is the actions you take and the mindset you have.
You only make or lose money on stocks and real estate when you sell.
The second thing is, you waited to buy and got rid of some of the cash because of debt. That's not all horrible, and it's good your debt is paid off, it just changes the range of home or area in which you can live. You presented yourself with a false choice. You can still afford a home, it just may not be in one of the nicest neighborhoods or the size and features you were used to.
Don't view your home as a piggy bank and get hung up on its "perceived value." It's all relative. My wife wants to sell and buy another house because our house is worth so much more than it was worth when we bought it... We live in a really nice home, it is too big for us, in a nice neighborhood. But to get something similar, the cost would be so close to what we sell it for it's a wash.
Buy your home to make it a home. Sell when you are going to immediately put the money into something else.
Don't worry about the market, worry about your family can do to own a home.
You can still buy a home in the market, it just may not be what you previously could have purchased.
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