Buying a home is an Escalator to Wealth
David Bach, author of “The Automatic Millionaire” that spent 31 weeks on the New York Times bestseller list, states on his website “The fact is, you aren’t really in the game of building wealth until you own some real estate.”
This advice from a well-respected millionaire has been a commonly held belief for decades – though the reason for sharing this advice now is because there seems to be a growing slowdown in the demand for luxury homes, which is having people question the value of homeownership.
As demand decreases, this is putting pressure on the value of homes. For the 4th consecutive month, there has been a decline in the average sales price of detached homes throughout North America. Certainly these shifts are not dramatic, but with speculation of a slowing global economy, there will be even more stresses on the upper-tier market.
Bach further states in his book that “buying a home is an escalator to wealth.” How is this possible in a slowing market?
The answer lies in understanding the niches of opportunity that exist within the market at any time. In this month’s report, we investigate some of the niches that are currently in favor with real estate investors.
According to the National Association of Realtors (NAR), the traditional market is seeing an increase in demand. Their recent report indicates that there are more interested buyers than active sellers, meaning that inventory may be increasing but there is still a shortage of supply. In most cases, the increase in demand ultimately drives home prices higher.
Read the full report here.