Ignore Volatility?

Ignore volatility? It's easier said than done in a world that broadcasts and re-broadcasts every single volatile moment, non stop! If there is one thing we need to broadcast to the Sellers and Buyers more loudly and more clearly, it is that homes should never be viewed as a tradable entity. Ownership in a home and community is a long term prospect, and an investment in life. Trading is usually focused on short term thinking and subject to macroeconomic considerations that have little to no bearing on the long term.

Volatility in trading markets and trading floors is loud and noisy, akin to a gambling hall. Some are cheering their wins while others decrying their losses.....quickly tempted to re-enter the fray to sound like the WINNING table over there! The gambling hall is designed to fuel a winner-loser mentality. It is designed to motivate people to ONLY think of quick gains. Leave the noisy trading floor, and the halls of long term investment advisors are much, much quieter.

Why does any home buyer even care about what their home will be worth in 6-18 months when the vast majority of them will own that home for at least 7-10 years...or about 15% of their adult lifetime? If you are buying at the age of 45, that shifts notably: at that age you are buying for roughly 23-25% of your remaining adult life!

Simply put, homes as an investment will always have something to show for your money at the end of the day. They may not have soared in value, but over time the equity building by paying down debt leads to wealth creation and prevents you from paying your after-tax money to a landlord that you will never see again.