Adjust Your Sails for the Current Real Estate Market

Lara DeHavenDave Ramsey, Homeowner Tips, Lake Conroe Homes, Mike Goins Real Estate, Montgomery County

Adjust Your Sails

Many people feel that they are shut out of the current housing market between the high prices for homes and the high interest rates. Millennials especially have been affected adversely by inflation, interest rates, and debt. According to Newsweek, many millennials are also single, which makes homeownership more difficult on a single income. But it is not just millennials who are having trouble affording a home, it is a widespread issue in America. So what can one do? Dave Ramsey says, “Adjust your sails.”

Quit Yelling at the Wind

You may find that you cannot afford to purchase a home right now. It is a fact that many are currently facing. Yelling at the wind will not be effective at all in changing that fact. For a moment, it might make you feel better, but it will not change your circumstances. Dave Ramsey says that the winds have changed. The current housing market is what it is based on many factors.

We have recently gone through a worldwide pandemic and nationwide shutdown. Many people could not work and personal debt began to climb. As people started moving out of the large cities, “feeding frenzies” for homes began being part of the “new normal.” Unfortunately, buyers were often paying above the asking price as well as foregoing the much-needed house inspection.

Then, people started moving to places like Florida and Texas from states like California and New York. Between the high cost of living, higher taxes, and more stringent rules of blue states, real estate markets in red states continued to stay hot. For example, the Lake Conroe area has grown tremendously in the 2020s.

Now with inflation increasing the prices of everything from apples to automobiles, the housing market is also affected. It costs so much more today to build a house than it did ten years ago. Couple this fact with high interest rates, and you can see why buying a home is out of reach for many Americans right now.

All of this is true. However, in the above video, Jade Warshaw suggests grieving these facts and the loss of your dream, but don’t stop there. Don’t just yell at the wind. You must act.

Adjust Your Sails

So if the winds of the market have changed, you must adjust your sails or you will never reach your destination. Sailors work with the power of the wind to get from point A to point B. If they aren’t careful, the wind can drive them off-course or even capsize them. In the same way, not adjusting your plans in this real estate market can keep you from homeownership for a longer time than necessary.

Ring Theory

One of the suggested ways to adjust your sails in the video was ring theory. This theory states that the further you are from the heart of a city the less expensive real estate will be. Of course, lakes and views of water are factors that increase prices in ring theory. However, for most of America, this is a simple theory.

In Montgomery County, houses east of Conroe and I-45 typically cost less than The Woodlands or on Lake Conroe. Also, neighboring Grimes County has a less expensive cost of living than Montgomery County. Consequently, it is seeing a lot of growth as people are moving out to the next “ring” from multiple places—Montgomery, Magnolia, and College Station.

Focus on Getting out of Debt

Although not in the above video, you can use this time of adjustment to get yourself out of debt. Doing this will help you be financially free, increase your credit score, and allow you to save the excess money towards a down payment. Focusing on getting out of debt will increase your ability to afford a home.

Reevaluate Your Needs vs. Wants

We use the term “dream home” often. People dream of their ideal house with up-to-date appliances, high-end finishes, and large, open spaces. Maybe it’s on the lake or a golf course. Starting with your dream home would be nice, but is it realistic? Reevaluating your needs can help you more realistically look at a potential house. I’m not saying lower your standards. You need a home to pass inspection and for it to be a safe environment. Perhaps you just don’t need everything on your wish list.

In short, adjust your sails in the current real estate market to eventually realize your dreams of homeownership. It is the only real way to make headway when everything seems against you. If you are having trouble with this process, contact Mike Goins. He knows the Lake Conroe area well and will be happy to advise you. After all, as John Rohn said, “It is the set of the sails, not the direction of the wind that determines which way we will go.”