Quote Of The Week: Walking Away From High Home Prices

Home prices are at record highs. Should you buy, or wait? (Photo: FilterGrade/Unsplash)

“We’re nowhere near where we were at the peak of the last housing cycle, but we do need to be careful.

Walking away from an obviously overvalued home may be the best thing buyers can do in this kind of market.”

Ken H. Johnson, real estate economist and associate dean at Florida Atlantic University’s College of Business, interviewed in South Florida SunSentinel, “Homebuyers should rent and wait out the housing boom, experts say, July 22, 2021

The Takeaway: Home prices across the state of Florida are hitting new highs, leading to concerns that real estate may become overpriced. Some real estate experts suggest that if you don’t need to buy right away, you may be better off renting and investing your money elsewhere until prices cool down. Yes, rents are rising as well, but they are not climbing as fast as home prices. Low mortgage rates and low for-sale inventory combine to make for a red-hot South Florida real estate market. The silver lining? Expectations are that more inventory will come on the market and price growth will slow later in the year.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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