My husband and I currently own our home and are looking at upgrading to a bigger house in the next year or two. The housing market right now in our area (US East Coast city) is doing really well, and our home is valued much higher than it was when we purchased it. However, with all of the new expensive developments popping up, I strongly suspect that the housing bubble here is going to burst soon.
On the one hand, if we wait until after the market turns, then buying our new place will be much cheaper than if we moved earlier. On the other hand, waiting would also mean losing value in our current home we would be selling. One of the other reasons we're thinking about this now is that we are on year 5 of our 7-year ARM, so our interest rates will be going up if we don't sell or refinance.
Considering that we would be looking to both sell and buy property around the same time, is it better to do it when the market is up or after it makes a downturn?