Is It A Good Time To Buy A House Right Now
Is It A Good Time To Buy A House Right Now?
Here's how to decide.
They say the best time to plant a tree was 20 years ago.
The second-best time is today!
Timing the housing market is nearly impossible, but understanding your personal situation is the key to making a smart move today.
The Myth Of The "Perfect Time"
You'll often hear people saying that you should wait for interest rates to drop, or home prices to fall before it's the "perfect time" to buy. There are a few issues with that logic. First, when interest rates and home prices drop, it's during a time of economic uncertainty. Meaning, there is likely weakness in the labor market, or some kind of economic stress happening. For example, during Covid we saw interest rates drop to the lowest in history, which later led to the steepest home appreciation we've seen in years. Although rates were low, the conditions were very unfavorable for home buyers. This leads me to the second reason the logic of waiting for those conditions is challenging. When there are more buyers in the market, sellers then have the power, which leads to competitive offer situations, and no ability for seller concessions, which represent a huge savings for buyers. When it's a buyers market, eager sellers are willing to give credits to cover closing costs, and buy down your interest rate. Another consideration is, as you've probably heard, success is about time IN the market, not timing the market. If you don't view your home purchase like a stock trader, then just by living in your home, you'll gain equity over time regardless of periodic swings in prices. Real estate has ALWAYS appreciated over time.
Focus On What You Can Control
You can determine your readiness by asking yourself a few simple questions.
First, do you have stable income? If you've bounced around a lot, in all different fields of work, and had long gaps in employment, it may not be a good time to buy a home.
Second, how is your credit? Do you struggle paying your bills on time? Do you have a lot of collections, or recently filed for bankruptcy?
Next, have you saved any money? Are you living paycheck to paycheck without the ability to save money? That's a red flag for buying a home and will likely mean it's better to wait.
Finally, where do you see yourself in the next 5 to 10 years? When buying a home you need to have long term thinking. If you plan on living in the home for a year or two, it may not make sense to buy as you'll be at the mercy of market fluctuations.
Understand The Market, But Don't Let It Paralyze You
If you ask yourself the questions above and you have stable employment, are able to save monthly, have maintained your credit well, and have plans to stay put in one area for a while, then it's likely a good time to buy a home. This is regardless of market conditions as they always fluctuate. Also, keep in mind, when it's a good time for someone else to buy, doesn't mean it's a good time for you. Conversely, when it's a bad time for someone else to buy, it may be a good time for you. Everyone's situation is different.
So, Is It The Right Time For You?
The media, or Uncle Joe shouldn't dictate when it's a good time for you. Ask yourself the questions above. Analyze your finances and budget. Think about your goals and where you see yourself. Once you do those things, you'll be able to make a good decision for yourself.
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Peter Seroter NMLS 997692
This blog was written solely by me- not AI.
