Here's Why You Shouldn't Hold Off on Buying a Home

If you look in the news these days, you can find a lot of doom and gloom about the real estate market. Yes, interest rates are incredibly high. Yes, the price of buying a house still seems artificially high. However, not everyone is best served by holding off right now. In many cases, this might be the perfect time to buy your new home. Here are the reasons why buying can still be a good idea.

Prices are Going Down

Much ado has been made about the current interest rates driving down buyer interest. The good news? That reduced demand means that home prices will go down. And this trend has already started, with home prices going down at record levels just last month! This means that, instead of the usual constant trend of prices increasing ad infinitum, they’ll come down a bit. Sure, interest rates are high, but that’s what adjustable-rate mortgages are for. In this kind of market, buyers can lock in a reasonable price and worry about their rates later. And that price may even be more reasonable than they realize at first, because buyers have more bargaining leverage than usual.

Home Buyers Have More Power than Ever

When competition between buyers is low, competition between sellers can rise. When this happens, it’s buyers who suddenly have the power in the dynamic. This can lead to many great things for buyers, including massive savings and sellers paying for more things to sell. People want to sell their homes when they want to sell them, but if you’re a buyer, especially right now, it may pay to hold out for a little bit. Less competition doesn’t inherently reduce the supply of homes on the market, but it may do so over time as sellers wait for the market to come back up. So, if you don’t jump on this fast, you could lose some of that sweet leverage.

Renting Stinks!

Hey, did you know that being a renter can be difficult? Most of us rent for at least some portion of our lives, so we’re intimately familiar with the normal trials that renters face: bad landlords, not being able to make the space truly your own and having to move much more frequently. Of course, I’m sure you’ve heard that rents increase a lot, forcing you to exercise your renter’s rights just to stay in your home! When you own your own home, these concerns melt away, leaving you with a home you can make entirely your own. There’s a reason why nearly every person strives to own a home, and it goes beyond just the monetary benefits. Renting with no end in sight can leave you drained and unhappy, so get out of it as soon as possible!

You Can Always Get Your Money Out Later

Buying a home is almost always the largest purchase a person makes during their life. It requires them to pay an amount of money that can seem unfathomably large to them, and that’s just the down payment! However, the thing about homes is that they tend to appreciate. This means that the money you put into an investment can be recouped later. And there are plenty of ways to get that money out if you need to! Refinancing your home is relatively easy to do and can get you the influx of cash that you need to get through difficult times. Whether you get a home equity loan (or second mortgage) or a home equity line of credit (HELOC), you can always get something out. You can even see the maximum amount that you could get out of your home with this reverse mortgage calculator. The bottom line is that, while home buying is incredibly expensive, it’s a responsible investment in the long term. You’ll get your money back over time, and you can always get enough of it to help yourself out if you need to.

Conclusion

When it comes to buying a home, there’s never a perfect time. It’s always tough to finally commit to buying because there are so many factors that go into buying a home. However, that doesn’t mean that you should let those factors deter your buying process. Right now, interest rates are high, competition is low, and there are concerns about a looming recession. There are silver linings to these problems, though: low competition can put power back into the hands of buyers, and renting has never been so expensive. If you find the home that you want to spend the rest of your life in right now, then pull the trigger and buy it. You’re better served taking what you want now than waiting for more favorable conditions later. After all, who’s to say they will be more favorable?

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.