In my country, the housing market is down. House values have dropped in some places up to 20% since end of 2021. People talk about how it doesn’t matter when upgrading a house as homeowners would be selling and buying in the same market. ELI5?
In: Economics
If you sell your house when the market is down, you’re getting a bad deal. But if you buy a house when the market is down, you’re getting a good deal. So if you sell your house and buy another house at the same time, it balances out.
if you buy a house in 2000 worth 100k and sell in 2024 at 500k………you made 5x the money (without including repairs/insurance/interest payments)
you are now homeless
all other homes have appreciated…..so you can buy a house for 500k
are you better off??? no your house went up, and so did every other house
It means that while the home you’re selling/moving out of has dropped, but so has the house you plan to buy/move into. A drop in value hurts you as a seller but then benefits you as a buyer.
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