I don’t know much about hedging vs speculation and I’m not quite sure what to call it in this post. I know that when I’m shopping, it’s a little more difficult to “find” a good hedge or speculation. But when you’re taking the time to explore a neighborhood or neighborhood for a new home, it feels good to start thinking about the possibility of finding a hedge or speculation for you.
In my free time I do some research on the subject, and find out which area is more likely to be a good home for you when you finally reach home. I use a variety of sites, and find that there are many many sites that offer a couple of suggestions for a home on the internet.
But I think the main reason people hedge or speculate is because they feel the need to. To make a house look more appealing to potential buyers. It can be like the feeling you have as you walk down the street when the first person you see asks you if you want an ice cream cone or a taco truck.
People hedge all the time because they really don’t care. After all, they’re not buying your house. In fact, the vast majority of people hedge only when there’s no other choice. I’m sure a lot of people who are looking to buy a home only hedge when they hear that they’re being offered a large tax break for a home they don’t even want.
I do know that most of the people who buy a home are pretty much idiots, but they also tend to think they’re being stupid. That’s part of the reason why I prefer the “nice” house.
Hedging can be a very useful tool in a market when there is a lot of speculation about a home. However, this is when it becomes important to make the right calls. The best time to hedge is during early stages of the market where there is a lot of speculation about what the market will do for the next few years. The rest of the time, you want to bet that the market will do well, and then buy at the right time.
Well, I can only speak for our neighborhood, but at our neighborhood’s first big home sale, I saw 3,000-5,000 square feet of speculation. I don’t know if it was enough to push the property value up or down, but it wasn’t a bad thing, and it made that first sale a lot easier.
To be clear, speculation doesn’t come out of a vacuum. It’s just a kind of a bubble, and I think it is a good thing that we have an economy going where people are willing to put more money into the market when they see others are doing well.
I’m not saying that speculation is always wrong. I agree with your characterization of it as a bubble, but it is also a good thing. When homeowners sell their homes, they often end up in a position where they need to sell at a loss. I don’t know of any other market where this happens. In the last 10 years, home values have risen by an average of 8% for an average home sale.
My point is that home prices often rise at the exact same pace as the price of the home. If homeowners are able to hold onto their homes for a while longer, there is a chance that they can actually sell them at a higher price. If home values are rising, it is reasonable to conclude that the price of the home is rising. The amount of cash you are willing to put into the market is a good indicator of the market that is in place.
