Do recent changes in today’s market mean that people should buy a home now, or wait? Many are worried that the shift we’re experiencing signals an impending housing crisis. Today I’ll address why it may not be best to wait for the market to come down before purchasing.
First, the market is not headed for a crash, so don’t expect home prices to drop by 20% to 50% as they did back in 2007. Supply is still low, and there’s still plenty of demand for homes. Many people are waiting to see what happens in the market, but I recommend that you act now.
At 9%, inflation is at a 40-year high. Financial advisors say that it’s key to buy hard assets like real estate during periods of high inflation. Stock doesn’t count as a hard asset; stock prices have fallen 22% since the beginning of the year. However, if you own property during an inflationary period, you can enjoy the tax-deduction benefits of homeownership and appreciation, which has historically been better than gold during such times.
You won’t regret buying a home now. Though rates are higher than they were, you have options to lower your rate, such as an adjustable-rate mortgage or a seller buydown. Plus, if rates come down after you purchase the home, you can always refinance.
If you have any questions about buying or selling a home in today’s market, don’t hesitate to give me a call or send me an email. I’d love to help you.