Buy Low, Sell High: Navigating Real Estate Markets and Investments

by Emilee Mercado

from the Alliance Team with RE/MAX Results

Highlights

• "Buy low and sell high" is a common investment advice that applies to various industries, including antique and furniture stores.
• The recent popularity of the Barbie Movie has increased the demand for antique Barbies, making it advantageous to have purchased them before the hype.
• Real estate prices were high during the pandemic, but people were still eager to buy due to factors like low interest rates and increased demand for larger living spaces.
• The decision to buy or sell a property depends on individual circumstances and goals, especially for residential buyers.
• Currently, real estate prices are still high, but with prices and interest rates on the rise, it may not be as advantageous to buy now as an investor.

Applying the Principle of 'Buy Low and Sell High

When investing in anything, the advice "Buy low and sell high" is often mentioned, and it makes sense. If you're running a store that sells antiques or furniture, it's beneficial to buy items when their prices are low.

For example, let's consider the recent popularity of the Barbie Movie. Recently, it was just released on streaming platforms, further raising the demand as new people are watching it at home. If you had been selling antique Barbies, it would have been advantageous to purchase them a few years ago before the movie generated significant hype. Now, with the increased demand for these fashion dolls, you have the opportunity to sell them at a higher price than you would have a couple of years ago.

High Prices and Eager Buyers

However, despite the obvious truth in this advice, people don't always follow it. During the market highs of the pandemic, real estate prices were extremely high, and people were buying eagerly. While it was good to own property at the time, it wasn't as advantageous to be a buyer. Nevertheless, houses were still selling quickly, indicating significant demand from buyers despite the high prices.

This demand can be attributed to factors such as low interest rates, increased demand for larger living spaces, and a desire for stable investments. However, it's important to note that the decision to buy or sell a property depends on individual circumstances and goals, especially for residential buyers looking for a place to live.

Navigating the Market with Expert Guidance

Currently, real estate prices are still high, and we've been receiving calls from clients interested in buying a home while prices are high. However, with prices and interest rates on the rise, it may not be as advantageous to buy real estate now as it was before. If you're buying an investment home, now might be the time to wait. If you're buying a home to live in, this is still a good time because you can always refinance as a resident much easier than as a rental home owner, although it is possible.

It's worth mentioning that real estate markets are cyclical, and prices will fluctuate over time. Buyers should carefully consider their financial situation, long-term goals, and market conditions before making a decision. So hang in there, Houston! The Alliance Team at RE/MAX Results is dedicated to helping you navigate these challenges and achieve your real estate goals. Whether you're buying or selling, our experienced team will provide expert guidance every step of the way. So don't let those rising interest rates get you down, we've got your back!