Should I wait for the housing market to crash before purchasing a home? This is a question many buyers are asking themselves as home prices and interest rates continue to rise. When it comes to the housing market, there is no crystal ball to predict the future. Waiting to purchase a home based on market predictions is a risky decision that could end up costing you more overall!
Should I Wait to Purchase a Home?
Although the level of competition may ease, home prices are not expected to fall anytime soon according to Next Advisor. Furthermore, some factors contributing to these high home prices include supply chain disruption, low housing supply, and increasing buyer demand. Instead of waiting for prices to drop in the market, base your home-buying decisions on your own personal finances and timeline. Review our blog, The Ultimate Beginner’s Guide to the 50/30/20 Budget Rule to set yourself up with a strong budget to help with financing a home of your own.
With both home prices and interest rates rising, many people may feel discouraged with their homeownership goals. However, it’s important to consider the long-term benefits and the financing options available before abandoning your home buying plans.
What Can Homebuyers Do in a Competitive Market
While it may seem scary to purchase a home in today’s competitive market, there are many strategies you can implement! To name a few:
- Assess the Most Important Detail: When reviewing a potential home, ask the listing agent about the details that are most important to the seller when selecting an offer. Asking what the seller values most allows you to create an offer that better appeals to the seller.
- Review of the Neighborhood: After identifying a property that is ideal, review comparisons in the neighborhood to determine how competitive the specific property is going to be. Analyze what it took for similar properties to go under contract and consult with your real estate agent.
- Formulate a Competitive Offer: Before determining how much you should offer; remember to review how much you are comfortable paying each month. Set your home purchase price level beforehand so you know where to draw the line.
- Be Prepared: The best home buying strategy is made from a well-informed decision. Ensure you are purchasing a home with enough cash to close. Meaning you have enough money to complete the transaction of buying a home.
Review Direct Mortgage Loans’ Competitive Offer Checklist to understand the different home buying strategies. Additionally, check out our blog Homebuying Strategies in a Competitive Market to understand the different home buying strategies, you can implement!
To put it briefly, waiting for the housing market to crash before purchasing a home may end up costing you more overall and is a risky financial decision. Focus on the factors that YOU can control to set yourself up for success. Contact a Loan Officer today to learn more about your personalized mortgage solutions!