Are You an Optimist or a Pessimist When It Comes to Your Real Estate Decisions?

Are you an optimist by nature? Or, do you tend to be more cautious or pessimistic? With inflation, higher interest rates, and a changing market, how do you make the best real estate decisions for you? Whether you are an optimist or a pessimist, when it comes to your real estate decisions, you want to be rational.

Warren Buffett said, “It’s optimism that is the enemy of the rational buyer.” He’s got a good point.

Ask Questions, Get Answers

So, if you want to make a rational and wise decision when it comes to your real estate, start by asking some good questions. And, then get good answers. Complete answers. How familiar you are with the market, and more specifically, your local market? Are you financially educated? Do you have good advisors? What are your long-term goals? The choices you make today will impact your future, so you have to connect the decision-making dots.  Surprisingly, people are often unaware of the string of connections that bring about outcomes. Good or bad.

Here’s a great question posed by Dr. Andy Stanley: “In light of your past experience, current circumstances, and future hopes and dreams, what is the wise thing to do? It’s a great question and one you should ask yourself often. And, not just when it comes to your real estate decisions.

It’s important that you go deep and narrow when making decisions. But, you also need to consider the broader context. How will your decisions today impact your finances, investments, and your life, in the months, years, and decades ahead? When you ask good questions and get good data, you can be more confident and optimistic about your choices.

What’s the Market Like?

So, how is the real estate market? The answer to that question is, “It depends.” It depends on the neighborhood and the specific property. All real estate is local. We are definitely seeing a contraction in the number of sales (volume),  with the largest drop in sales volume in the Ewa Plain and Kaneohe regions. We are also starting to see price adjustments in some neighborhoods. But, properties in some areas are still receiving multiple offers and over asking prices. You can view the market stats report for more specific detail by clicking here.

How you view the state of the real estate market depends not only on current market trends and data, but on your own individual circumstances, timing, and goals. And, perspective. Perhaps, even your personality.

In general, how do you view things? Are you optimistic about the market? Pessimistic? Rational? When it comes to your real estate decisions, maybe you can be all three. Here’s a suggestion: be cautious about the things you can’t control, be optimistic about the things you can control, and be confident about the knowledge you get from your own education and wise advisors. And then, make a rational decision.