Is Now a Good Time to Buy?

Hi, this is Randy Woodruff with Suncoast CPA Group. And I want to talk to you today about a question I’ve been getting a lot, probably over the last six months. And as it relates to real estate, I’ve had many clients asking me, should I? Is now a good time to buy, and also, is now an excellent time to sell? So I’m going to break this up into two different videos because this is quite lengthy.

Both are pretty lengthy topics, and there’s no exact answer. But there are some good things to think about, and that’s going to be my point. So we’re going to have one video. One is now an excellent time to buy another video is now a good time to sell. So let’s start with buying, you know, and you may have heard the expression that when investing, especially in real estate or stocks, you make money when you buy. And that’s what that means you make money because you’ve bought it, right? You bought it at a reasonable price. You got a good value. You got it at a deep discount. And so your entry price, your strike price, is meager, and that helps you achieve a higher gain. So there’s now a time to buy. Yeah, that’s a great question. I mean, I think there are still some values out there.

They’re usually harder to find, especially in the residential housing market. Now that things are cooling off a little bit. We’ve seen a significant pickup regarding the number of listings on the Mass. So there is more inventory in the market. So prices aren’t escalating like they once were, and we were getting, you know, 8 to 10 offers or more that were, you know, ten, 15, 20, 30, 40, 50,000 over the asking price at home. That’s calmed down, but there still are some opportunities out there. You still hear when it comes to commercial, there are some opportunities out there as well if you’re looking to buy the property and subdivide it, even if you are looking to buy property when it comes to residential, buy a piece of residential property and subdivide it is always easy to it’s always if you’re taking on, say, a 20-acre piece of property. You’re subdividing it into, let’s say, ten two-acre lots, you know, it’s easier for someone to afford a two-acre lot than a 20-acre piece of property. So we’ll give the example of a giant pizza and break it up into slices so everybody can have a slice. And so there are ways to make money. If you’re developing again, you’ll buy the property. You know what your development costs are.

I talked in a prior video about some information I got from Kiplinger’s. Kiplinger’s is a very respected source that I trust. And as some time, let’s say mid-August, they were projecting that for the balance of 2022, home prices would be up a little bit, and they’re going to be up around 11% overall for the entire year. But for next year, 2023, they’re going to be down 1/10 of a percent or basically flat. Now that’s a national projection. Yeah. So there will be parts of the country that are other parts that are down, parts of the country that are flat. So in terms of now the time to buy, I think you need to look at where you’re at. And in terms of geographically, we know we’re here in Florida, of course. And so Florida has an as been a scorching market. There are discussions that Florida may be one of the markets that cools off. I’ve heard that and I’ve heard that Florida is not going to really, you know, be flat. It may be up again next year because so many people want to move to Florida for various reasons. And so, you know, there will be different opinions, and we’ll have to wait and see. What happens, of course, is all kinds of factors that could happen between now and then that could also change it.

And that’s why it’s important when you hear you get a forecast. It’s based on the data at that time. And as we go through time, you get one month, two months, three months down the road. Those forecasts are likely to change. And you don’t want to stop at one point in history and make your decision. You want to be tracking data, looking for data, looking for trends so you can make the right decision. So, you know, I’m still looking to buy real estate. I’m buying land. I’m building spec homes. I’m doing some other development stuff. And I still think that if I can buy the property right and they can get it done for a reasonable cost, I still think there is an opportunity to make money in real estate and continue buying, but that’s just me. Everybody has to make a decision. It’s best for them. But if you want a further detailed conversation about what’s best for you and what’s suitable for you at the time, please call us at Suncoast CPA Group. 352-596-2883. You can reach us at the website down below. Click on that link, and you can fill out a request form and come in and see us that way. So thank you once again for listening. Have a great day.

Is Now a Good Time to Buy