What’s the #1 biggest fear when it comes to buying a house? The fear that your home will lose value over time…and that you’ll lose money buying a house.
Here’s what you need to know: Over long periods of time, houses very, very rarely decrease in value. Buying a home is nearly always a lucrative investment. And in the U.S., we have the history to prove it.
Truth: The Great Recession Was an Exception
A lot of us are still smarting from the infamous Great Recession of 2007-08, believing that if we buy a house, we’ll lose money. Many homeowners lost quite a bit of cash when the housing market tanked.
But here’s the reality: The Great Recession was an exceptional event. In fact, when you take a look at U.S. home prices from around 1965–present, you’ll see a steady uptick of growth. With the exception of 2007-2010, there are only occasional, small dips that eventually self-correct. In fact, most people who were able to ride out the housing market crash came out on top, financially speaking.
The Good News: Arizona is a Non-Recourse State
Arizona residents are fortunate enough to live in a non-recourse state. If you’re forced to sell your home for less than it was worth when you purchased it, you won’t be punished by your lender for not being able to make up the difference in value.
Don’t Wait to Buy a Home
Some of us might be tempted to wait to buy a home, hoping that the market will dip. In reality, you’re almost always better off buying a home now. Waiting a year (or more) is rarely a good idea, as houses tend to significantly increase in value – in as little as 12 months.
That being said, if you’d like to monitor the market closely, check out some of our “Bubble Watch” posts to see what the market is doing in Arizona.