Congrats home buyer who just paid over the asking price for a hot new listing. I hate to burst your bubble, but did you know that your house and/or your neighborhood were some of the hardest hit during the housing slump? Sure, the market is hot right now…..but it won’t always be. Know what that means?
Long story short here, IF your house or neighborhood were not at the top of any buyer’s radar in a bad market, it won’t be during the next buyer’s market. The neighborhoods buyer’s want haven’t changed. There are just fewer choices for buyers and people are settling for their second choices. A shortage of listings means ANY house will sell right now. It won’t always be like that. Just ask the people who paid top dollar for your house or in your neighborhood between 2002 and 2005. They too thought they were lucky to have paid top dollar in a bidding war and were sure they could always sell for more than they paid for it.
So, one thing I stress with my buyers is that they ought to stick with a neighborhood that was still most buyer’s #1 choice in the darkest hours of the housing slump. That makes them more resilient to any market changes……and even if the market never drops again, it also mean they are in a position to see the most appreciation. It is all supply and demand. Make sure you pick something that will always be in high demand….that way supply doesn’t affect you so much!