Business
Here in Thoughts On Money [TOM], we prefer to discuss relevant topics that are financial planning-centric, timely, and surrounded with misconceptions. The housing market has become a hot topic recently, with current home prices checking all the boxes for a great topic to discuss here on TOM. In the last 12 months, the median sales price of houses across the country has jumped 15% - 20%, depending on the area you live in. My wife and I bought our house in October of 2019 and recently had to have our home appraised, which was a value 33% greater than our purchase price just two years earlier. A jump in prices of this magnitude typically leads to three different types of responses: Sell while the selling is good Buy before it's too late Wait to purchase until prices normalize For many savers/investors, their residence makes up a significant portion of their balance sheet, which means that this is a crucial planning topic to discuss. The direction of the wind or the emotion of the hour should not dictate your buy and sell decisions when it comes to your home. As you can derive from the three common responses, I listed above, a jump in prices typically leads to rushed decision-making. A feeling or need to "strike while the iron is hot." In the world of financial planning, pressure to accelerate a decision typically precedes bad decisions. So, slow down, have a process and method for assessing your big financial decisions – none of this ready-fire-aim behavior that riddles our modern financial culture. Links mentioned in this episode: http://thoughtsonmoney.com http://thebahnsengroup.com