For starters, you can use the same techniques that have worked for many who live by the “rule”; Buy low and sell high.
The first step is to determine the type of real estate market that exists in your area.
Types of Real Estate Markets
Although there are many variations and twists, basically real estate markets fall into three categories:
Buyer's markets exist when there is more inventory, meaning houses for sale, than buyers. Because buyers have many homes to choose from, not every home for sale will sell. Most experts agree that if six months or more of inventory is on the market, it is a buyer's market.
- Seller's markets
- In seller's markets, there are more buyers than available inventory. Because there are fewer homes for buyers to choose among, almost every home will sell. Typically, there is much less than six months of inventory in a seller's market. In extreme seller's markets, there is less than two months of inventory in reserve.
Neutral markets are balanced. Typically, interest rates are affordable and the number of buyers and sellers in the marketplace are equalized. The scales don't tip in either direction, meaning the market is normal without experiencing swings. Inventory is generally around four months.
In this current market, any young person that hasn't bought a house ought to buy one.
A buyers market doesn't come along that often, you can make money on whatever you buy today at the prices they are."
Interest rates are only going to go up over the long term, so borrowing will cost more if you wait.