Why to Focus on Affordability, Not Market Crashes

Market Trends

I get asked sometimes, "Diana, when do you think the next big market crash will be?" and, "do you think there will be another crash?"

My answer is: I wish I knew because then I'd be very rich! There are signs (trends) we can watch that tell us a little about what is going on in the market. Things like available jobs, unemployment rates, interest rates, affordability indexes, credit habits, supply and demand (inventory), politics, wartime, peacetime, stocks, the list goes on and on... For years the housing market has gone up and gone down (and up and down again), and there is still no perfect or 100% accurate way to predict what will happen with the market next. All we can do is watch the trends and compare current market values to our own affordability, because for better or worse, the best way to build wealth is to own real estate. So, rather than focusing when the market will "pit or peak," focus on your buying power and start building your wealth.

To calculate what you can afford on a home right now, visit this page and start learning more about your buying power.