Mourning with Uvalde – what can we do?

 After the Parkland murders occurred, and again after the Santa Fe murders I asked my readers to take action.   I ask you again to please take individual action within your own sphere of influence. Please, also communicate with school and governmental leaders. Hold them accountable and demand that they implement solutions. Do not assume that your schools are safe.  Demand testing, practice, and exercise protocols be instituted.

Once again America mourns the loss of innocent children.  How horrible for the people of Uvalde to suffer such a loss of innocent life.  That such things can happen seems unimaginable, but we know them all too well.  May each of these families, and the community of Uvalde, find peace and healing after their immense loss.  May their loss and God’s love inspire our nation to gain the understanding and wisdom needed to come together with humility in a cooperative manner to prevent such horror in other communities.

My House Price is Inflated – Should I Sell?

Average U.S. national house prices have increased to record levels.  Homeowners may view the current market as an excellent opportunity to sell.  While the market is high, there are also indications that a correction may occur within the next few years.  Selling near peak and waiting out a correction to buy at a lower price is a potentially profitable option.  In pursuing such action, it is important to distinguish assumptions from facts in decision-making.

In my last blog post, “Real Estate and the First Time Buyer,” I provided an assessment of how the housing market arrived at its present state and explored possible outcomes in the market in the coming two years.  It was written for the benefit of the first-time buyer.   This post builds upon that analysis and explores options for the high equity owner thinking of selling.

There are many reasons to consider selling in the current market.   For example, one’s financial portfolio may be disproportionately allocated to real estate due to the rise in prices.   Or one might be at the limit of the real estate capital gain tax exclusion ($250,000 single or $500,00 couple).   Selling now would restart the two-year exemption timeline on the next house and save significant taxation.  Maybe there were already plans to downsize or retire or move to another job or make a vacation home or rental property into a permanent residence.

There are too many scenarios to assess in this limited space.   The context of people’s lives and regional housing market conditions vary considerably.  So, the remainder of this post will explore a single case study that can provide broad insight in many scenarios.