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I sent the conversation we’ve been having in Survival about the merits of selling in this market to Gary London, local real estate analyst.
“If you sell right now you’re by definition either distressed or stupid,” London said.
I’d heard from another reader, LL, who hoped to hear from London or another real estate analyst on DF‘s dilemma:
I had the same reaction as DF when I read the article … my husband and I have been considering selling for similar reasons, and I was totally discouraged by Gary’s quote.
Here’s London’s response:
I think that it is perfectly fine for this home owner to sell now. The third ‘scenario’ that I should have suggested (and in my defense I usually remember to add this scenario in my public utterances), and this response corrects me, is specifically directed to those homeowners who have long term equity in their house.
That is to say, if you have owned your home for many years and will realize a gain regardless of external market conditions, you can comfortably sell. The ‘upside’ to you is the opportunity to purchase another home at low loan to value and exceptionally low interests rates. That is an attractive situation. Ultimately, your home will again increase in value, but so will the house you will buy. So it’s probably a ‘wash’. Sell your home and buy the bigger one. You are not stupid.