Investments are the most successful when they a bought at lows and sold at highs. No kidding, it really is that simple. Buy low, sell high. Doesn’t get any simpler than that. You have to know when the price of the investment is going to be at or near the bottom and then be able to know how long to hold the investment for when the highs come.
Here is concrete evidence that we are looking at the bottom. WARNING: this gets technical, not complicated, but technical, please bear with me, it’s worth it! In January 2011 home prices dropped 6.6% from December and 4.6% from January 2010. Ouch! looks like a low! Here is a sign better days to follow; Closed Transactions fell 28.5% from December, which is not annualized and nearly equivalent to the historical December to January change. The year-to-year change in transactions has been improving for three months: -30%, -25% and -5%, and in January finally turned positive with a 0.7% increase over January 2010. According to RIS Media. And, average days on the market numbers are improving, houses are starting to sell faster. According to the RE/MAX National Housing Report, overall inventory was down 3.6% from last month and down 5.6% from January 2010. This shows a shift toward recovery. A seller market is around the corner.
So, there you go, proof that the housing market is at its low and that it is time to buy, and that the market recovery is truly underway and the high times are soon to follow. Some markets are better or worse than others, of course. It is all relative, so know your local market and go for it. Get Colorado market info here.
I’m buying, are you?