Home Sweet Home
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Here in Thoughts On Money [TOM], we prefer to discuss relevant topics that are financial planning-centric, timely, and surrounded with misconceptions.\\xa0\\xa0The 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.\\xa0 \\xa0
\\nIn the last 12 months, the median sales price of houses across the country has jumped 15% - 20%, depending on the area you live in.\\xa0 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.\\xa0
\\nA jump in prices of this magnitude typically leads to three\\xa0different types of responses:\\xa0
\\nSell while the selling is good\\xa0\\nBuy before it\'s too late\\xa0\\nWait to purchase until prices normalize\\xa0
\\nFor 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.\\xa0 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.\\xa0 \\xa0
\\nAs you can derive from the three common responses, I listed above, a jump in prices typically leads to\\xa0rushed decision-making.\\xa0\\xa0A 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.\\xa0 So, slow down, have a process and method for assessing your big financial decisions \\u2013 none of this ready-fire-aim behavior that riddles our modern financial culture.\\xa0\\xa0\\xa0\\xa0
\\nLinks mentioned in this episode:
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