What does it mean to be “priced out of the market”?
Category : Laguna Beach Real Estate
In a nutshell, it means that while a few months before, you could afford the type of house you wanted (more or less), but prices have risen so fast that now you feel that you cannot buy anything at all. You feel that it’s no longer worth it to buy – so you continue to rent. And you continue to watch prices rise, both for the home you wish you had bought but also the rents over which you have no control. The gap between what you could have bought (but didn’t) and what you can buy now can mean the difference between feeling able to buy a home and not. When the gap gets too big, you are “priced out of the market”.
Have you been patiently waiting for just the right house to come on the market? It may not be forthcoming. It is very possible that while you watched the market last year, prices were getting primed for a rebound of sorts. It’s now underway and guess what? What you could afford a year ago is no longer possible today!
This is one time when waiting does not pay off!
Why do buyers wait when they might do better to jump in?
- they may be unrealistic as to what the market will bear (sometimes despite the statistics)
- they are cautious to the point of being unable to move forward
- they are listening to bad advice (at work, from friends etc.)
This is no time to fiddle and watch Rome burn. If you want to buy a house in Orange County and have been sitting on the fence, this may be the time to get off and dive in.
While I’m not a ‘pushy’ agent but an informational one this argument is an important one to pass on.