The First-Time Buyer Question

Buy now or wait for the market to “cool down?”

I am getting this question on the regular from potential first-time home buyers. They’ve heard the news that the market is hot, hot, hot. They wonder—will it be better to wait for a cooling down period in which there is less competition and prices may drop?

Maybe you’re in the same category. Here’s my take on market conditions: 

One major factor driving home prices is lack of inventory. There simply are not enough homes in this country for the people who want them. Making up the estimated shortage of homes (5.5 to 6.0 million) won’t happen overnight. Waiting for inventory to catch up is not your best bet. 

Interest rates are still at historic lows. That means your buying power is up. However, there are forces circulating in the economy now that could change that in as little as six months. If rates go up, the amount of house you can afford goes down.

And here, in my opinion, is the real crux of the issue. Is the market accelerating away from you?  

Are prices moving higher, whatever the reason, faster than your income will keep pace? If the answer to that question is yes—then buy now. A year from now you may find yourself priced out of the market.

The ultimate answer to this question includes the factors above plus your personal circumstances, which I’m happy to discuss with you in detail. Click here to schedule a phone consultation and let’s talk through whether now is a good time for you to buy.