Homebuying: Act now or wait it out?
November 18, 2022
The housing market is always changing, so it can be hard to determine exactly when to buy — and when to wait it out.
What if home prices or interest rates rise? What if lower costs are just around the corner? No crystal ball can give us these answers, but there are some factors you can take into account before making your decision.
Are you hoping to buy a home soon? Not sure if you should act now or wait until next year? Here’s what to think about:
1. The State of the Market:
Is a housing market crash or recession likely? Look to expert predictions to determine how the future of the market may look. Then, you can evaluate any risks there might be in buying now.
2. Supply and Demand Trends:
If supply is up and demand is down, you might be able to get a great deal. If the opposite is true, there’s probably a lot more competition (and higher prices due to bidding wars). We can talk about the market trends to come up with a strategy for you.
"Supply is defined as the number of rental properties available in a market or submarket. Ideally, supply should be low and demand should be high.”" – Ken McElroy
3. Mortgage Interest Rates:
Keep tabs on overall economic trends. If rates are expected to keep rising, acting sooner could save you money in the long run, especially if home prices also rise. And you may be able to refinance for a lower rate in the future, too.
4. Home Prices:
Consider that price declines can help you get a deal upfront, but they could also mean your home may not gain as much value immediately; this might be more of an issue if you’re not planning to stay there for the long haul. Small price fluctuations in either direction are usually not indicative of larger trends.
5. Personal Finances:
Your financial situation is the most important factor. Does it make sense for you to buy a house now? Consider your credit score, debts, income and other expenses when evaluating whether or not buying a home is affordable.
Are you interested in buying a home? Do you have questions about the market? Let’s chat.