The Buy A Home Now Or Wait Conundrum

The Buy A Home Now Or Wait Conundrum-I want to talk about a question that’s on a lot of people’s minds right now, and that is, should I buy a home right now?

I mean, mortgage rates are up to the highest level we’ve seen in over 12 years. Home prices are up. We’ve seen record appreciation for the past two years in a row, and it’s continuing to appreciate. And the short answer is likely, yes, you should still buy a home right now. And it does still make sense, especially if this is your primary residence. Unless you intend to sell the home, to buy the home now and then sell it within the next year or two, which is more of a speculation if you’re buying it for the purpose of hoping for appreciation and making some money on the property, then that can be risky. No one has a crystal ball. We don’t know if home prices are going to go down. I personally do not think they will go down, especially in places like Colorado, where we have people moving here.

But the thing to keep in mind is that if you’re buying a primary residence, that over time housing has done very well and has been a huge wealth creator for people across the country. And if you look at historically in places like Colorado, where we have an influx of population, historically our home appreciation has averaged between five and six percent each year. So that’s a huge wealth creator over time. And if you don’t intend to move, remember your primary residence, that’s your home. So if you’re buying in an area that’s close to your job, it’s close to your kids’ schools. You like the neighborhood, those kinds of things, and you don’t intend to move, real estate tends to do very, very well over time.

So that remember, this is your home. So it’s a place that you’re putting down your roots. You’re going to be there for a while. And the other advantage of buying versus renting, so if you’re a renter watching this, pay attention to this, you’re locking in your payment. Remember your mortgage payment does not increase over time. And we’ve seen rental rates increase at historically high levels, over 11% over the past 12 months nationwide. So rents, there’s upward pressure on rents. We have an inflation problem in the country right now that doesn’t look like it’s going to ease up anytime soon, inflation drives rents up. So it’s likely over the next one to two years that your rent is going to go up pretty significantly. So if you’re prepared for that, great, but remember when you buy a home, you’re locking in that payment. So that’s one great advantage of owning a home.

Now, there are some things that could go up, like property taxes, homeowner’s insurance, but the actual payment itself does not increase. It’s fixed over time. So as rents go up, your mortgage payment is not going to go up. So this is an advantage. Now, so if you’re a renter, that’s a great reason to consider buying right now.

What if you’re a homeowner and you’re considering moving or buying? Remember, if you move during a market like this, and you’re worried about buying, you’re also selling into this market with housing prices up right now. You’re going to get a good sales price for the house that you’re selling. So that’s something to keep in mind as well, that it’s kind of, in a sense, it’s a wash. So if it’s a lifestyle change, whether you’re upsizing or downsizing, you need to change neighborhoods or you’re moving to another part of the country, you’re getting both sides of that equation. So that’s something to consider as well.

So I am still a big advocate of buying a home. Now, of course, with mortgage rates up, it’s a matter of whether you still qualify. So it’s important to look at and whether the payment is going to fit into your budget. So if you want to look at that, look at what the numbers look like. Give me a call, I’m always happy to talk to you about that and answer any other mortgage related questions. That’s why I’m here. And I appreciate you guys watching have a great rest of your day.