NEW YORK – Under the “buy low, sell high” theory of investing, some homeowners think the current housing market will collapse the way it did during the Great Recession, so they’re selling now and renting temporarily as they await plummeting prices.

However, real estate market conditions are very different now, and while prices in some markets could fall a bit, a major price drop isn’t likely unless it stems from some unforeseen event.

“What you’re risking is essentially investing in a rental for a period of time until the market does what you hope it will,” says Jonathan J. Miller, president of Miller Samuel Real Estate Appraisers and Consultants. “That seems fraught with problems.”

However, if home prices do drop and real estate sees the return of a buyer’s market, these sellers could stretch their money further than they can today.

Source: New York Times (06/24/22) Kaysen, Ronda

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