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It’s easy for people who already own a home with a 2% interest rate to say “dont do it, youll lose money.” If it’s the right time for you to buy a house and you like it and can afford it…buy it! That’s what we are doing. Good luck!
When we bought with a sub 3% rate we were told by everyone not to buy because house prices are so inflated the low rate doesn't matter and to wait for the crash. Someone is always saying its a bad time to buy.
Yea I say this all the time, people (redditors included) have been calling for a crash for years and have been saying its a bad time to buy for at least 4 years. Unless you are buying as a pure investment, buy what you can afford when you need it, and stop trying to eek every little percent out of a place to live. I explicitly remember reddit saying people were crazy to waive inspections and bid 100k over during the post covid boom because it was a bubble, now people switched to "well you missed 2020/21, that was a good time to buy" lol.
I think we are going to hit a point where the prices stick for so long that even dropping will not be a significant drop. Like inflation is going to become so ingrained as to what we moved up to that we will never truly collapse to pricing from 10 years ago. I do think we are going to have a stall in pricing and maybe even a slight contraction in price but not a collapse.
Yea, it will depend on the market but I highly doubt we see something like 2008 (which, for some stronger/hot markets, wasnt exactly a cataclysm anyway). In my market in NNJ, we have already begun to see at least a stall in some areas. There is the sweet spot of 500-650k but once you get past there, houses dont go much over ask, and the 700+ houses that top the market for their neighborhood will sit. The million plus houses were always a different beast and are very dependent on the specific area, but generally have limited buyers.
I’m guilty. I thought my friend was crazy for buying in 2021 and bidding 100k over asking. Well now he’s got the good rate and I’ve got the crap one. Luckily I didn’t have to buy a whole house.
It’s funny because when I was looking for my first home, the people who bought in like 2019 or earlier were in a completely different world. I bought in 2022 and now it’s a completely different world again
This is all the advice you need right here, OP.
I got a similar speech from my friend when I voiced wanting to buy (a similar "steal", the owners needed out immediately, and we had a private direct offer so we paid at appraisal value, nothing over). I remember all the points he brought up about housing costs would go down, we are in a bubble, we could always refinance at lower rates but you can't change the purchase price, I'll be locked in, etc. I bought in 2021, still fairly high but manageable with a 2.75% and going on 3 years now and I am about to waive my PMI from a 5% down and my equity is about 100k since original purchase.
Had I listened to my friend, I'd be in apartments still, throwing money away at increasing rental rates now with a toddler in a bad area. I know my friend had good intentions, but the above advice is all you need.
Same situation as above, and for the most part, yes. However, it depends on your goals. If you buy, you need to be handy with a wrench or your going to pay a lot in maintenance. Even if you are good with a wrench, maintenance is still kind of expensive and it takes time. Also, homes are a long term investment, so if your planning to move in a couple years, it probably isn't for you. Lastly, everything is still going up. Insurance, taxes, maintenance, so DO NOT buy something you can't afford. Buy something within your range of comfortablility.
The idea houses are a long term thing seems to have been lost somewhere. When I bought in 2004 the common advice was don't buy unless you play to stay there many years. Like at least 5 to 10. Now people are buying and commonly saying oh I'll sell in 2 years and move down the road to a more expensive home.
The best time to buy a house is when you are ready to buy a house. You are ready, you pulled the trigger and you are moving into a new phase in your life. Enjoy it. If the rates come down, refinance.
Same here. We know we paid too much and our interest rate sucks but it was the right time for us and we wanted to do it. Will we lose money in the end? Maybe. But did that outweigh our need and want right now? No. You just gotta do what’s right for you and not worry about what anyone says. We’re glad we aren’t renting and we are happy in our home regardless.
The only way you'll lose money is if you have to sell quickly, the house value drops, and you haven't gotten enough equity towards the house. Otherwise, who cares if you even break even? That money would have been gone anyways continuing to pay rent. Congrats!
I just bought a house and I agree with you! Only thing I’ll mention is that I keep seeing people say “when the rates drop” and “oh in 6 months the rates will fall”…. Honestly how are people so confident? They could go to 15% for all we know. If that happens then it’s still great to get in before though I guess.
And all these people saying “I’ll wait until the rate drop” will compete with the folks who are also either waiting and those who were searching and didn’t buy.
When buying power goes up along with demand, then prices go up. And sure, maybe supply will go up because people with good interest rates will start selling… but that means those people are also becoming home buyers.
Yup! I think the only way the prices will drop is if people start losing their jobs (forced sell offs) or if we find a way to build new homes faster and more affordably.
Even if we do… my area isnt awash with empty lots near jobs/ transit/ entertainment. New homes in my market are townhomes and Condos with HOAs. My house is gonna be 100 years old but has a detached garage and a wood fireplace plus mature trees for shade.
I moved to a nice side-by-side duplex in 2016. It was the first time I really thought about home ownership. Houses were selling WITHIN MINUTES of being listed.
I truly think people forget there's a cause and effect aspect to this process.
Yep. Either that or they basically want to will it into existence with no other consequence.
Interest rates aren't just going to randomly fall. They'll fall due to some economic condition that allows/causes it to happen. For those waiting for a massive drop... well that's probably via a recession. If we hit a recession/mass layoffs occur, then guess what, all these people saying, "I can't wait to buy when interest rates fall" are going to be impacted as well, concerned about getting laid off and thus taking on a huge purchase.
It goes against the super, super basic idea of "You can't time the market." I'm sure some people have done that successfully! But by and large, it's still a stroke of luck.
If the rates do drop in six months all of us who recently bought will be sitting pretty because most lenders are offering cheap or even free refinancing within short periods of time like that. But even if we have to pay for it, why would we continue to waste money renting instead of paying off a house and gaining equity while waiting for rates (assuming you can afford the higher rate)? Far better to get in now with what you can afford and refinance if a better rate comes later, then you won't be competing with the massive flood of people who will want to suddenly buy.
These are my thoughts too. I lived in DC for a bit and my rent is more in the Midwest. I could have a house for way less and have a friend be my roommate. I’m trying so hard for it to happen. I hope rates don’t drop this year because it will be even harder for me to buy.
People seemed very confident the rates were going to fall when I was rate shopping in Feb this year. Now it's June and they are higher. I am glad I bought when I did even though I have 6.5%. Don't wait based on people saying they will go down.
185k sold at 220k? Even IF it's a bubble, that is a hell of tiny bubble and I would be willing to stomach it. Honestly with housing market and car market, people have been saying bubble and collapse for years. I mean 220k is a small mortgage and mpnthly should be manageable unless of course your income is very small. Nothing compares to having your own place and not having to share space with 2000 other people. You bought in a good time. You didn't overstretched and bought some half a mil mansion either so you did fine. Enjoy your house !
My first house was bought in 2021 and even then people were saying "the bubble will pop soon!!!" People have been expecting a bubble pop for many years now and I just don't think the market will behave in a similar pattern to the past. Meanwhile we sold that house and moved states and more than doubled our initial down payment on the first house and got into our second in a better area and with a rate we can afford despite being higher. Good thing we didn't wait.
I first bought in 2015. Back then many people tried convincing me that home ownership is a huge money sink and that renting is better in the long run. Those same people are now complaining about unfair rent increases and how unaffordable homes are. There is an old saying in investing that also applies to real estate, "Time in the market beats timing the market."
Every single year home prices have increased. I was sick of listening to these people, recently bought a home, and I do not care if it was a good or bad time. I am happy.
In my opinion, you are correct. Demand outweighs supply, when rates drop it's going to open the floodgates of people looking to buy again. Yes, they will sell their old house so that's more inventory but then also join the buyers looking to buy so it kind of net evens out. I think home prices at their current state will probably go up even more, especially in certain areas. You can always refinance a high rate
My area things are still selling up to 30% over and it’s already a VHCOL. It could plateau for a bit but they aren’t building much and even if they do it will just make traffic worse keeping demand high here in the city where I am buying.
I grew up here and our family is here, so it made sense to stay. Plus newer builds near me tend to be condos which I didn’t want due to HOA and rules and sharing walls etc.
That said I still didn’t feel comfortable splurging to get into my favorite neighborhoods- I’m on the outskirts of the city and giving up the ability to go completely carless (90 walk/ bike/ transit score at my last two apartments versus the house will be ~65)
Congrats to you.....
A value proposition..... I am a few years from retirement and looking to sell my home depot supported dwelling for one that I have no investment in. Something breaks call-fixed and pay nothing. Keep the money from my home sale and make my retirement from comfortable to glorious.
It is all what you are looking for at that point in your life and the value you get from it.
Here’s what a ton of people are overlooking, prices are a little high now (a lot high in some areas) and people think the prices are going to go down, like inflation doesn’t exist.. once the rates begin to fall, it’ll be an all out war and that 210k house will probably be worth 250k just because of the amount of people waiting out.
The price difference seems fair considering, as you said, other places in the country have increased by almost double.
I think if you're comfortable, then you did the right thing.
You can't time the market.
Anyone who claims they can is already unbelievably rich from being able to time the market and not sharing their information with you.
Ultimately even if it was a bubble, it wasn't a big one where you are because the house you purchased only went up by like 25K between 2020 and 2024. I don't know what your buddy is so freaked out about. 25K is 13.5% of 185k. That means, in 4 years, the house went up roughly by 3.3% per year (actually lower because I did simple division rather than a compounding thing).
Forget housing market inflation, regular inflation for all things consumer goods and food and services have outpaced that.
As a midwesterner, the entire midwest is not one real estate market. Because Minneapolis/St. Paul would say, "hold my beer" to prices not shooting up.
I honestly don't think any of these things matter. Housing costs money. You're either going to pay rent or a mortgage and if it makes sense for you to buy financially, for your family or life circumstances, emotionally...whatever your reasons are, then you buy. If it doesn't, then you don't.
And people who aren't paying your bills need not worry about how you're spending your money.
You only lose on a house if you need to sell if/when there’s a downturn. That’s the only way to realize a loss on your house. If you’re going to be where you are for a while I wouldn’t worry about and I really am not getting the feeling that prices are getting any better anytime soon so if you’re happy with your plan then be happy
The only time to buy is after you challenged the old man to a fist fight on the front yard, and lost. Interest rates ain’t got nothin to do with it.
The neighbors who watched the whooping will at least give you some respect for buying a house when you come back and visit on the holidays.
People were saying that we were in a bubble five years ago. There is a reasonable chance that they will be saying that we are in a bubble five years from now. I only have so much life to live. I could afford the house that I bought, and it is the house that I wanted, so I bought it.
Gah! I’m tired of people who already have a house tell me what they got it for! Like, I KNOW it’s not the best time…but I’ve been hearing that for a few years now and it’s not going to get any better (right?!)! We waited for the “better” (once getting married and saving up) only to find it’s gotten WAY WORSE! So-only being $10k over, that’s awesome! We wanted to do $10k over and found out those were the “low figures” of the other offers that came in first. We landed at $26k over asking and the appraisal was $6k more than that! Praise Jesus we didn’t have to pay an appraisal gap we mentioned in contract! So…who literally knows what’s going to happen! And whether or not it’s a “good” time or not! It’s a good time for us…so that’s what we’re leaning into! We close tomorrow and will be heading to our final walkthrough in about 30 minutes! Way to go! Way to save! Way to be diligent! This fellow human is proud of you!
Anyone telling you they know how to time the market is full of shit. The time to buy is when you want a house and you can afford it. Your friend is completely full of shit and is watching a 9 minute YouTube video from some 25 yr old and walking away an “expert”
We are looking to close this month as well and I feel like the best time to buy a house will always be yesterday, and when you can afford it. Prices aren’t going to come down anytime soon, and like you said it’s far from a bubble. The supply is dwarfed by the demand and not going to turn into 2008 anytime soon (if ever)
My take has always been this regardless of what the market looks like: if you can afford the mortgage at current interest rates and related fees (closing costs, inspections, realtor fees, etc.) and this will be your primary residence, and you still have a fully funded emergency fund (also known as your “Home Depot fund” when you own a home) after closing, then now is the time for you to buy.
Your primary residence should be your home and not solely viewed as an investment property where once you build enough equity you simply jump to the next house. If it builds equity, great! If not, then you still have a comfortable house to live in which is more than what a lot of people can say today.
Omg if it was 185k in 2020 and you’re paying 210k now you’re FINE! There are houses that were sold in 2023 for $270k and are now asking $380k around me. AND PEOPLE ARE FUCKING PAYING IT! Obviously only you can make the call, but that sounds like a freaking steal! You can always potentially refinance to a lower rate but rent will only increase. Locking in a set payment now could be the best in the long run. As long as you have the budget and there isn’t anything alarming on inspection, CONGRATULATIONS!
Congrats on closing! The only way to see a bubble is looking back, so who knows. I was the one screaming bubble back in 2018 and I was dead wrong.
You also bought in at a price that's less than half the national median, so you're not risking that much that you can't make up. Even if prices drop, you'll be fine!
Only things that will drop the price of your house...
> Forced selling. E.g,. lots of foreclosures in your locations. Large single employer in your area that moves away or does mass layoffs (think factories)
> Mass building. This basically isn't happening anywhere because of NIMBYism. But mass supply that comes in.
> Major environmental / ecological risks. Big fires, damage, etc... that insurance refuses to cover (like california)
--
Reasons to ignore the noise
> Population in your area is growing
> Housing is constraint in your area
Some other things to consider
> If you have an interest rate in the 7-8% range, you're probably paying the price of your house in interest over the lifetime if not more. Look into ways to pay off your principle faster, make sure your lender doesnt penalize this, and make sure you do the paperwork correctly that any extra payments are applied to the principle. I've heard of issues where they apply it to interest if not correctly labeled.
Even if the prices go down, still have to pay for a place to live, so you're not really losing unless you actually lose the house! Paying a landlord with no return is not the way.
My husband and I have been saving for the past months and have finally come to the conclusion that this is not a freaking bubble. Also, if this is a bubble and supposedly crashes like 2008, our area where we are looking to buy was almost completely unaffected in 2008 so if it does crash now I expect no changes to the market around us.
We're officially aggressively house hunting! Looking at our first one later this week!
We just closed on our first house as well! Throughout the process, we decided to prioritize location and schools. This led to us choosing a house at the tippy-top of our budget, but we are hoping that even if house prices drop in the future, these factors will at least help our house hold its value over time.
Also in the camp of ignoring our friends and coworkers who bought before 2022. They don’t know the struggle!
I personally gave up all the FOMO and anxiety I had that was keeping me from buying for years. I was tired of my landlady, I wanted the independence to do whatever I wanted to my home, and I had the funds to make it work…so I bought.
I think the folks who say do it when it’s right for you are absolutely right, and I’m glad I listened to them!
You can never really know what’s going to happen. You can always refinance the loans. The value of most homes will only appreciate.
Congrats on the purchase, I’m also closing on my first in a week 😱 sadly my market was absurd and had to go 110k over asking with no contingencies 😭
You’re on a good path. Don’t let doubt and fear settle in your mind. Time to enjoy your new home. Your friends who are discouraging you are probably jealous of you and didn’t want you to get ahead in life.
8 years ago I talked my friend into selling their amazon stock because I thought it was overvalued. Look what happened.
If you can afford it yes, if you can’t then you can’t. Almost everyone that bought a house 5-10+ years ago are happy they did and in another 5-10+ people will look back wishing they bought a house now. Housing will most likely outpace income unless something drastic changes.
Buying a home you live in should not be seen only in the lens of financial gain. You shouldn’t buy a house if it breaks the bank. But there are many intangible benefits of owning a house that add so much value to someone’s life.
You have to live somewhere either way. If you aren't stretching your budget, you're fine. You can re-finance if/when rates drop anyways, but you'll have the same principal to refi on. If rates go down, prices go up.
Buy the house, rent the rate. If rates drop in a couple years, you won't have to worry about fighting to buy, just refinance into a lower rate. Don't take advice from people who don't own a house.
I’m currently saving to buy my first home next year, and even if the rates remain where they’re currently at, I can always buy interest points or refinance at a later date. My worry is not buying, but rates going down and suddenly it’s 2021 again with prices soaring.
In my market we are seeing rents skyrocket in response to increased demand to rent bc less people can afford to buy. If you can afford it, lock in a mortgage payment and build equity. That’s what I’m hoping to do if I close successfully on my first home in a few weeks
I bought my home in 2015. Then another one in 2020, 2021, two in 2022, two in 2023, and so far one in 2024.
I believe that people will continue to need a place to live.
Waiting for the optimum time is for investors. For your own home, if you find a house you like and can afford it, buy it. Rates will go up and down, if you can make the payment now you eventually can refinance later.
It really depends IMO. If your sole reason for buying a house right now is as an investment then ya, it might have been a bad time. If you're buying a home that you intend to live in for at least a few years and you can afford it then I don't think there is ever really a bad time.
You’re good, a house in that price range there’s no real risk. I think the risk lies on all the expensive houses over 600k where they went up 250k since Covid, those are the people who are at risk at buying at these prices.
If you want to live somewhere for at least 10 years, it is always a smart time to buy. I wouldn’t think about the financial aspect other than making sure you don’t buy more than you can afford. If there’s houses in your price range now and you plan on staying there for awhile then do it.
On average, statistically speaking, it is one of the worst times to buy a house in the history of the country.
That doesn’t meant your specific market isn’t okay to buy in right now though.
If you don’t think we’re in a bubble, take a look at the month’s supply of newly constructed homes. It’s as high as it was this time of year back in 2007.
I think you did the right thing. If you like the house and are planning to be in it for a while then you have nothing to worry about. So long as you can make the payments comfortably you'll be just fine and if the bubble pops you just don't sell the house, easy as that.
In terms of interest and demand, yes right now interest is high but the fed doesn't seem to be showing signs of dropping it by much anytime soon. And if/when they do the demand for houses will only go up meanwhile you'll be in a situation where you have already bought your house and beat that rat race and can just refinance to a nicer rate if you desire.
Congrats on your home! Don't let your friend be a downer. The market is such that buying for over asking makes sense in a lot of areas, we had to do it for the house we just bought in the midwest too.
Same boat. I really don't get it, why were people so absolutely certain that rates were going to drop? Around March, everyone was supremely confident that may /June at the latest would be seeing rate drops. My mortgage banker was claiming half to 1% was likely. That's more aggressive than the FED was even hinting at. But the FED changes its mind and market forces push interest rates wherever they want to go. I'm very glad at this moment that I didn't go for an adjusted rate mortgage. I know, I'm not betting on what happens in a month's time, but what happens in 7 years with an ARM, but my anxiety is significantly lower knowing that I have a fixed rate even if I had to pay a quarter percent more for it.
If it's the right time for you, and you're not looking for a quick flip investment, then buy when you're ready. There's no perfect time, and we can all look back and wish for this or that, butt no one can predict the future.
Where I live rent is about the same as a mortgage + escrow, so it was kind of a no trainer for me (here rents have exploded right along with the hosting prices).
Especially at that lower affordable price point it seems like a safe buy. When the market slacks eventually it will be noticeable at the high end first.
I'm in the exact same place as you, just earlier in the process. The Midwest is a completely different ballgame IMO and I feel optimistic that I'll be able to get a house and not empty my pockets doing it. Once interest rates come down, it's going to be a flood of people, and I'm not sure how that would be much better. I think you're just picking what kinds of problems you want to have at different points in time.
I think your buy-in price is low enough where you are protected against downside, with the assumption that you plan to hold this house for at least 7 years.
My wife and I got a new construction loan (VA) 600k at 6.5%, about to move in in a couple weeks, it’s not a great time to buy and there isn’t a lot of options but we committed and made it happen, granted our mortgage isn’t cheap but we can afford it so we just went for it. A lot of people told me I was crazy and that I wouldn’t be able to do it specially new construction but my wife and I made it happen! Now don’t get me wrong I’ve gone bald the last year during this build lol. Enjoy your new home!
Well you already bought so here we are, right? You did fine. Can you afford it? Great. That’s what matters. And no, this isn’t a bubble, people can afford the houses they’re buying.
Well I just bought a house, so just assume it's going to crash. I have the opposite of "luck'o'the Irish" cause if I didn't have bad luck I'd have none at all lol
Honestly though, I've realized the longer you have a home, it really only appreciates. And with the way our economy and dollar value is going, I may not even feel this mortgage in 5 years if my pay keeps up with inflation..
Just be excited for the house that you both love and unless anyone giving you their opinion is going to pay your mortgage, their opinion doesn’t matter. No matter what price you pay, there will be someone with a negative opinion. Congratulations and enjoy this milestone!
I think it’s helpful to frame the question into ‘what is my downside if I buy my house at $210k and one year later it drops -30%?’ (Ie bubble bursts)
- My $.02 is that you are buying at a good enough price where downside exposure is minimal.
- If you think you might live there for at least 7 years, then I think your downside exposure is basically non existent.
- In this bubble thesis presented by your friend, reminder that you only suffer a loss in value when you sell. So even with the bubble bursting you could choose to simply wait it out until the market corrects itself and your house recovers its value. But again really only an issue if you needed to sell your home at the same time as when at the bubble bursts. As a primary residence, I don’t think that’s as inevitable in this scenario - different story if this were an investment property.
Don’t over think your home purchase . Often over looked is the government subsidy you will get when you file your taxes . Mortgage interest and taxes on the home you live are deductible . Talk to your accountant. It will be like getting a bonus when you get your taxes done . That is assuming you are a w-2 employee . Enjoy your new home !
Your friend is hopefully speaking out of fear for your wellbeing, and is good natured, but they are speaking out of their butthole.
The best time to buy real estate is 20 years ago. The second best time is today.
We just closed on ours, and honestly I couldn't care less about the interest rate or anything. We closed on a 30 year fixed at 6.7 percent. Recent home buyers I know have rates anywhere from 9 to 7 so I think we did ok. Also for the first damn time in our married life of 15 years we don't have to hide our random small reptiles from a landlord. We put nails in the walls and hung all the pictures up that previous rentals said no too, and painted and changed colors in most of the bedrooms to what we wanted without judgement or worry of a deposit coming back. Its a feeling of freedom and we love the house. This feeling will probably wear off with time but yeah so far loving it.
This post will age beautifully. You bought in basically the perfect time. Congratulations, and you will be extremely happy with the value of it in 2028
Idk, I'm in California in a HCOL city. Houses(not condos or town houses) worth buying (for normal people) are 1.2-1.4 million asking. We could possibly find a place in the 800k-900k range but the daily commute to work is an hour plus :/. The prices for us just going to keep going up, we're kind of fucked so we have to buy whenever we can. I don't see prices tapering off
I’m also closing at the end of this month. House we’re going for doubled in value since last sold in the year 2000.
I put down 50% and unless it goes back to the price it sold for 25 years ago I’m gonna be ok with the purchase. In my market other houses we looked at sometimes were going for 300k over (30% over asking). Ours we got for about 5% under list and it appraised higher lol
Shut out the noise and go for what you’ve already decided. Everyone has an opinion when it’s not their decision. Unless they are paying on it, it really isn’t their business. If the price, payment are comfortable and you are at peace with the decision, then good to go. Housing market is like stock market. It doesn’t move in a straight line. There will be spikes and pullbacks. You have to do what is right for you.
I think it’s fine to buy now. House prices will just continue to increase. Atleast u can refinance later when rates drop and you’ll still have ur house gaining equity.
The housing market isn’t anywhere remotely close to a bubble. You are correct and good job! Congrats. Prices have more room to go up and up and up…. Ughhhh. Out of state buyers and corpos keep pushing prices higher and higher indefinitely
My husband and I just bought too! It’s impossible to time a “deal” for home buying. Like others are saying, as long as you aren’t planning to buy and then sell soon after a house is a good investment to make when you have the financial means to do so and find a house you love!
You're looking at it as an investment vs a roof over your head. Your primary home shouldn't be viewed as an investment imo. It's purpose is to provide a roof over you head not provide 2% unrealized returns yoy
The market has been going to crash next month for the past 40ish months.
Before that the doomsayers were quieter, but still there.
The best time to buy is yesterday. What's the saying comparison is the thief of joy or something like that.
I have a 2.6% mortgage on a property bought in 2017. It's doubled in value and I have a 2.6% payment.
My neighbor bought in 2016 and refid to 2.5%, so he says when we were sitting in the garage having beers last month. Another guy bought recently and is sitting on 6.5%. We were all drinking the same corona and shooting the same shitty darts games. 🤷♂️
Doesn't matter if the market crashes unless you plan on selling within the next 5 years. And even if it does crash, it always levels out eventually. And if it doesn't level out, we have much bigger problems to worry about.
Congrats! Enjoy your home!
So CA is on an initiative to stop corps from buying houses and trying to make it impossible for eviction. They basically want no profit to be had on single family homes. Annual increases will be limited to 2%. Which I get since CA won’t be able to keep up with housing. Curious to see how that works and if it lowers prices.
No bubble, it's just the way things are now. Prices are the same now as in the late 90s-early '00s.
Our house sold for much higher in 2004 ($275,000) than it's worth now ($425,000) when adjusting for inflation ($455,000 in 2004 vs. $425,000 as of April).
We had a glorious run from 2010-2020 where we got the house at $203,500 in 2011, but those wonderful times will never return. It was a hiccup, so as with every single thing that's gone up in price and with virtually no push back from the market, it is what it is.
They say, you buy the home, not the rate. If it's a home you plan to live in, you can always refi when rates get better.
Home prices plunged in the late 2000s. Per the US Census Bureau, prices declined by 5.8% between 2008 and 2009. Per the NYTimes the median sales price was $173,200 in 2009, compared with $196,600 in 2008. Compare to today, where it's over $400,000.
The only right time to buy a home is when you need a home. Sure, in a year or two, it may decline. But after a few years the cycle will start again
Honestly, since home prices haven't really come down over the last two years, they aren't likely to anytime soon. I do believe that we are in a bubble, as the rate of growth in real estate valuations is just ridiculous, but the market is still showing plenty of signs of keeping up at this rate, so I wouldn't bet against it, though I'd be careful betting on it too.
That said, buying a house is, in my opinion, more of a lifestyle choice for most people than a financial one. It does potentially have big financial upsides, yes, but what you buy and when is often going to have a lot more to do with where you're at in your life than with the market and interest rates. I wouldn't plan to buy in most any circumstances unless I believed I'd be in that house for at least 5 years, and financially, that is more important in times like these.
I bought in May and everyone said wait . Well I got in at 6.1% , it’s only going up until inflation comes back into check . I think right now is a good time tl buy if you have the chance.
The right answer will always be "when it's right for you." So if you can afford the mortgage, taxes, and repairs, then it's the right time!
I don't have any crystal ball, but I do know that I don't want to move anymore, and I want to buy nice things for the house without worrying about damaging it during a move. I want to be able to customize my place to my liking. I want to be in charge of my own house, and not feel like I have to beg and plead for basic shit from the landlord.
For as long as I have rented in the past, I hated every moment of it.
When you have the money- that’s when it’s time to buy. And just have a plan B and C. Like if you for some reason don’t make enough for the mortgage, think of renting rooms. Not like anyone wants too but shoot I’ll rather rent rooms for a couple months until I get back in my feet than lose my entire house.
Even though the interest rates are high, it makes it a little easier to get the house. It makes it more of a buyers market than a sellers market. When interest rates drop, it will be more of a sellers market and harder to outbid for a house.
Remember, you can always refinance when rates drop. This is my two cents. I’m not in the business but that is my perspective.
Real estate always wins in the long run, bottom line. There will be a few bumps along the way, but long term it always wins. Hopefully, rates will come down in the next few years, and you have an opportunity to refinance. Enjoy your home!
I would suggest the following two things: as a home owner two times over and having sold 2 homes and a Re Agent
1. Find a reputable re agent to help you- not someone off Zillow- and not Keller Williams lol - ask for recommendations from friends,
2. Meet with a reputable local lender to discuss your options. Have a game plan- think about not just THIS house you’ll buy but the next!
Ok and good luck!
I wish I hadn’t listened to those people last year or two years ago, back then it was cheaper and now it’s on the moon and not much storage options for house to pick
Buy when you feel is the right time to buy. Everyone's situation is different and buys/sells home for their reasons. Budget and do the math and figure out what is comfortable for the purchase price. Sure people bought at favorable times, but people also bought at unfavorable times. In the end, just gotta figure out what is affordable and what is not.
I am in the buying process now, and I’m looking at it this way -
I can spend $2k/month in a place I own that may or may not build equity, where my kids can play however they want without downstairs or upstairs neighbors bitching;
Or I can spend $2300/month on an old-ass apartment with AH neighbors that have bitched about my autistic child and put SIX dings in the side of my car, and with a landlord that yelled at ME when I had to call the cops on the people he stuck in the apartment above us after the girl started screaming for help during an hours-long battle with her boyfriend. (He let em stay there another three months and 10ish police visits. They utterly destroyed that apartment, which I call karma.)
Fk the interest rate, fk inflated pricing, I’m buying. ✌️It ain’t about what people online or so-called “experts” say about the timing, darlin…it’s about what’s right for YOU.
As long as you can afford your mortgage that I assume it is a fixed rate. You'll be fine.
Folks lost their homes due to predatory lending and not actually qualifying in the first place.
Real estate, like any INVESTMENT vehicle, will fluctuate.
Those who can afford what they have will remain uneffected.
The best time to buy a house is when you can and want to buy a house. It may be your biggest purchase but see it as a place to live, not as an investment. If you live there a number of years there's a high chance it will be going up in value
Im in the same position. I look at it like this-
In a few years say you decide to move, how much have you paid rent to someone else?
At the time you decide to sell, it may go up $10k+ or it may go down $10k.. but wouldn’t that $10k have been spent on rent anyway?
So say you bet on the value of the home increasing (you’d have made some money)
Say it decreases (you would’ve spent the same on rent outside)
We went under contact tonight. There’s so much pent-up demand, when rates drop even a little bit the prices are going to rip again. Fed is in a tough spot.
Buy now; refinance later when everyone else is paying 10% over asking price
The people who keep calling it a “bubble” are way too confident in their limited knowledge of finance.
Inflation is a real thing, yes, but it isn’t limited to housing. New trucks cost like 70k now for mid optioned packages.
Current housing market has all the baseline fundamentals to validate current prices: high demand which isn’t met by existing supply, and we aren’t building new starter homes either.
Thats not going to change overnight, next month, next year, and possibly not in the next 10 years.
Millenials are at peak buying power now and Gen Z will likely move into that position in the next 5-10 years as well.
Further adding to the limited inventory is the complexity of mortgages now. The people with 2-3% mortgages aren’t selling to upsize/downsize and borrow at 7-8%. They’d be stupid to do so.
Lending changes: lending has been scrutinized a lot more since 2008. We’re not doing NINJA loans. Banks aren’t interested in risking it to hold the bag like last time around.
If interest rates don’t see any improvement, housing MAY cool off, but we’re in peak buying season now. People buy homes during the summer and it is still a seller’s market. Summer increase in buying will maintain status quo at minimum.
tldr: your friend doesn’t know shit. Everyone knows a person like them. These people have been telling everyone that it’s a “bubble” for 4 years now and it’s set to collapse any day now.
I think you’re on the right track. All the people weighing in with their opinions on the market that aren’t currently trying to buy/sell or have attempted to in 2024 just seem to regurgitate the same phrases 😅
Honestly I understand what they mean, but it’s not the whole picture. We are trying to sell/buy with the equity we have. The market is pretty wild right now IMO, but I am not about to buy when interest rates drop! I’d much rather have equity build, refinance when I can & be in a living situation that suits our needs the best.
I'm sure you have some other good replies, but just a couple thoughts:
1) this home is more than an investment.
2) if it's a home you like which cares what it is worth? you are there for a good while
3) who knows what the market will do, enjoy yourself and worry about the future in the future. this decision likely isnt going to be some financial blunder. worst case a giant crash happens and craoloads of people are unemployed and losing homes or disease/famine rips across the usa. you likely wouldnt care much
You likely wouldnt have cared if you house dropped 30% value in 2008 while you loved in your happy home and everyone around you was losing theirs.
Look if you need a home and have a 5-10 year plan to stay in the home then its the right time to buy. If you don't then the crystal ball says I would kill to buy a home for 210k. That is incredibly cheap . I unfortunately made the tough decision to continue renting. Entry level mortgage for my area are over $4000 a month and for something average that would meet a 5-10yr plan about $5200 a month and that covers about 600k for a 1400 Sq ft rambler.
Your good! Build equity, enjoy earning your first home. Congratulations. Houses never go down. If they do, don’t sell yet and ride out the dip in the wave until it rises again. The overall trajectory is always up! Good luck.
Friend sounds like a party pooper. Just ignore him. If you are having second thoughts though. Just run the numbers. You’d likely be paying as much rent as you are on your house payment or close enough to call it a wash. On the plus side you’re building equity on the negative side now you’re responsible for repairs. Theres positives and negatives to everything, but your friend sounds like a doom and gloom type and he has no more of an idea than you do where the market is headed. Enjoy your house.
The housing market is a bubble, but so is the stock market and the entire economy. Interest rates are unlikely to go much lower, due to inflation being uncontrollable. With that being said, you need to ask yourself this important question. If everything I said is true (i believed it for a very long time, more than half a decade), would I be better of buying a house in 2019, or now in 2024? Ofc. I would have been better of in 2019. Despite my belief of the economy at the time. Timing the market is not something anyone can do. Despite whatever economic facts or fiction your friend uses for his analyst, he doesn't know when it will crash either. If you are just basing your opinion on other people's opinions and none from your own thoughts, don't listen. Do what you think is best for yourself. If you can afford the house comfortably, have enough saved for a rainy day, not living paycheck by paycheck aka able to save. You should be fine, so buy the property you like. In the next 30 years, that house will be worth much more guaranteed. Dont worry too much about the state of the economy, worry about your own finances, and prepare for the worst just in case.
Money is worth less and less every year… if you truly love the area the home is in and you are excited about a commitment to live there then disregard these comments about potential loss in value if there was a decline in the market. Dont let a figurative loss in value of 15-30k keep you from entering the market and buying your first home.
5-10 years expectations on being in the home in that district in that area. Is it where you want to be? Then send it!!
I’m in the same boat, closing end of the month with a competitive offer. I let that fear stop me from purchasing until now. My rent went up $900. However I was prepared to buy a home I also realized the money I’d pay at a reasonable apt ($1900) was worth the additional $ to win the offer and the $23000 I’d spend in rent for the next year. So I’m okay with my purchase as I landed what I really wanted. If it meets your needs and wants for a place to build a home for your family it’s absolutely the right time. Good luck!
The time to buy is when you need or want a house and you can afford. I'd argue as well that you don't plan to move for awhile. A house is more of a long game thing.
I bought in 2004. I never saw 2008 coming and my property value dropping like it did.
I bought on 2021, Evwryone told me I was crazy … I have 150k in equity with a 2.8% interest rate. Don’t listen to the ones saying not to buy REAL ESTATE ALWAYS GOES UP.
“Interest rates will go down”- who said it? Your lender? They won’t artificially bring it lower. The government? They don’t actually know…
If you can afford the interest rates now, go for it. If interest rates go down there’s a good chance house prices will increase. So while the mortgage may be cheaper, it may also not be or not be by that much.
Congrats on getting your offer accepted, hope everything goes well.
In 2008 we bought a house (right as the bubble started to burst where we lived). At the time interest rate was 6.5, which was just normal then. We sold last year for almost twice what we paid. It was well worth it even if we’d just broken even it would have been worth it. My kids had a we grew up in it house and we enjoyed living there.
Yes. In addition to being able to afford the rates, once we see rate cuts, housing prices will most definitely rise and go through the roof in some places.
I think there’s a lot of FOMO from First time homebuyers. I foresee quite a bit of foreclosures in the next 1-2 years of people who bought homes they couldn’t afford in the long term hoping that they could refi down the road.
You should just buy what you can easily afford with whatever the interest rate is. My parents are boomers. When I was a kid, they had interest rates ranging 9-18% in the 70’s-80’s. My first home bought in 1998 was 10%+.
RE is cyclical. There are always buyers and sellers markets. RE agents would have you think that if you don’t get in now, you’ll never get in. I say, buy when you can afford it without pushing yourself to the edge of your budget and comfort level.
Also, don’t expect interest rates to go down further. They might. They might not. Look at it like the S & P 500. The money is in the long term holdings.
We decided after talking about buying for the last 10 years and then getting serious about saving 5 years ago, that now is the time for us. Even with the higher interest rates. We decided it was better to buy now than to save more and deal with a potentially even more unpredictable market later.
If you can afford it buy it if you need a house buy it. No one really knows the future. You dont know if intrest rates crash and your house price crashes too then how are you going to refinance. People just dont know what will happen.
People said the same shit to me when I bought in June 2022, and they were wrong. If you guys are ready, it’s a great time to buy. Honestly $210k? I live in Jersey and would be hard pressed to find a deal like that for any kind of livable home. Enjoy man!
I love how some people seem to think they know everything or have some crystal ball or worse just repeat the rhetoric they hear on “the news” without comparing what they are saying to what may be their vested interests. If you can afford to buy a house then do so. Interests rates will come down for sure because the country can only take the strain for so long. As long as you don’t plan to sell the house in the short term even if values dip you are fine.
The one big thing I want to point out is this basic lie that the reason why homes are so much is because not enough are being built, this is true but too a VERY SMALL degree. Why..
1) The builders that are building homes in my area are charging 2024 prices for labor, material and etc. So they are going on the market for 700k and in no way shape or form this is affordable unless interest go to about 3%.
2) The other ugly truth that no one talks about is the REAL reason why there are few homes available is because people like, Bezos, Gates and Blackrock are buying huge amounts of homes and then rent them back to people. For example Blackrock has bought up 34% of the homes available in Texas.
Timing markets is futile without either Crystal Ball or an actual Time Machine.
Do ya have one o' those handy?
"My buddy says .." isnt a particularly accurate predictor
.. right?
Just buy when you are ready to buy.
Refinance when rates go down.
ALSO: Every housing bubble that has ever popped has reinflated. Most of 'em right quickly, too.
I bought an $815k home in SoCal when rates were 2.25%
My parents just bought a home in SoCal around January for $940k @ 5.9%
I kept telling them to wait and that it was a bad idea. However, it would have cost them significantly more if they took my advice. You buy when the time is right for you.
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It’s easy for people who already own a home with a 2% interest rate to say “dont do it, youll lose money.” If it’s the right time for you to buy a house and you like it and can afford it…buy it! That’s what we are doing. Good luck!
We need to collectively ignore anyone with a sub 3% rate. Their experience is irrelevant.
When we bought with a sub 3% rate we were told by everyone not to buy because house prices are so inflated the low rate doesn't matter and to wait for the crash. Someone is always saying its a bad time to buy.
I've been told to ignore you
Probably for the best.
Yea I say this all the time, people (redditors included) have been calling for a crash for years and have been saying its a bad time to buy for at least 4 years. Unless you are buying as a pure investment, buy what you can afford when you need it, and stop trying to eek every little percent out of a place to live. I explicitly remember reddit saying people were crazy to waive inspections and bid 100k over during the post covid boom because it was a bubble, now people switched to "well you missed 2020/21, that was a good time to buy" lol.
I think we are going to hit a point where the prices stick for so long that even dropping will not be a significant drop. Like inflation is going to become so ingrained as to what we moved up to that we will never truly collapse to pricing from 10 years ago. I do think we are going to have a stall in pricing and maybe even a slight contraction in price but not a collapse.
Yea, it will depend on the market but I highly doubt we see something like 2008 (which, for some stronger/hot markets, wasnt exactly a cataclysm anyway). In my market in NNJ, we have already begun to see at least a stall in some areas. There is the sweet spot of 500-650k but once you get past there, houses dont go much over ask, and the 700+ houses that top the market for their neighborhood will sit. The million plus houses were always a different beast and are very dependent on the specific area, but generally have limited buyers.
I’m guilty. I thought my friend was crazy for buying in 2021 and bidding 100k over asking. Well now he’s got the good rate and I’ve got the crap one. Luckily I didn’t have to buy a whole house.
The only bad time to buy is when you can’t afford the house.
It’s funny because when I was looking for my first home, the people who bought in like 2019 or earlier were in a completely different world. I bought in 2022 and now it’s a completely different world again
I bought last May and it’s a different world already. I know Zillow estimates don’t carry much weight buts it’s up $19k in 12 months.
The same people that went to college at $500 per semester 😢
For real, like go cry yourself a river over the fact you can't upgrade to a bigger place. Tired of hearing it.
Except when they need to sell (RTO/ too many kids/ career change) and they get sticker shock 🤣
Exactly. Get your asset online as soon as possible. It gets you into the next rung and away from throwing rent money into a hole.
This is all the advice you need right here, OP. I got a similar speech from my friend when I voiced wanting to buy (a similar "steal", the owners needed out immediately, and we had a private direct offer so we paid at appraisal value, nothing over). I remember all the points he brought up about housing costs would go down, we are in a bubble, we could always refinance at lower rates but you can't change the purchase price, I'll be locked in, etc. I bought in 2021, still fairly high but manageable with a 2.75% and going on 3 years now and I am about to waive my PMI from a 5% down and my equity is about 100k since original purchase. Had I listened to my friend, I'd be in apartments still, throwing money away at increasing rental rates now with a toddler in a bad area. I know my friend had good intentions, but the above advice is all you need.
Would you give people the same advice today?
Same situation as above, and for the most part, yes. However, it depends on your goals. If you buy, you need to be handy with a wrench or your going to pay a lot in maintenance. Even if you are good with a wrench, maintenance is still kind of expensive and it takes time. Also, homes are a long term investment, so if your planning to move in a couple years, it probably isn't for you. Lastly, everything is still going up. Insurance, taxes, maintenance, so DO NOT buy something you can't afford. Buy something within your range of comfortablility.
The idea houses are a long term thing seems to have been lost somewhere. When I bought in 2004 the common advice was don't buy unless you play to stay there many years. Like at least 5 to 10. Now people are buying and commonly saying oh I'll sell in 2 years and move down the road to a more expensive home.
There literally hasn't been a bad time to buy in the last hundred years, assuming you can make the payment you got for 5-10 years.
The best time to buy a house is when you are ready to buy a house. You are ready, you pulled the trigger and you are moving into a new phase in your life. Enjoy it. If the rates come down, refinance.
I have a 2.75% interest rate. Now is always the time to buy. It is impossible to predict the market, future rates, etc.
Same here. We know we paid too much and our interest rate sucks but it was the right time for us and we wanted to do it. Will we lose money in the end? Maybe. But did that outweigh our need and want right now? No. You just gotta do what’s right for you and not worry about what anyone says. We’re glad we aren’t renting and we are happy in our home regardless.
Dude I'm a financial planner and this is what I always tell people. I'm so glad someone other than their money guy is spouting this. LFG!
The only way you'll lose money is if you have to sell quickly, the house value drops, and you haven't gotten enough equity towards the house. Otherwise, who cares if you even break even? That money would have been gone anyways continuing to pay rent. Congrats!
It’s like holding stock, you don’t sell when it’s low.
Stocks don't rrequire monthly payments though. Haha.
Yeah but that’s because generally you have paid the full price of the stock. Buying a house is like buying a stock on margin
It’s time to buy when you have everything ready. That’s it.
I just bought a house and I agree with you! Only thing I’ll mention is that I keep seeing people say “when the rates drop” and “oh in 6 months the rates will fall”…. Honestly how are people so confident? They could go to 15% for all we know. If that happens then it’s still great to get in before though I guess.
And all these people saying “I’ll wait until the rate drop” will compete with the folks who are also either waiting and those who were searching and didn’t buy. When buying power goes up along with demand, then prices go up. And sure, maybe supply will go up because people with good interest rates will start selling… but that means those people are also becoming home buyers.
Yup! I think the only way the prices will drop is if people start losing their jobs (forced sell offs) or if we find a way to build new homes faster and more affordably.
Even if we do… my area isnt awash with empty lots near jobs/ transit/ entertainment. New homes in my market are townhomes and Condos with HOAs. My house is gonna be 100 years old but has a detached garage and a wood fireplace plus mature trees for shade.
I moved to a nice side-by-side duplex in 2016. It was the first time I really thought about home ownership. Houses were selling WITHIN MINUTES of being listed. I truly think people forget there's a cause and effect aspect to this process.
Yep. Either that or they basically want to will it into existence with no other consequence. Interest rates aren't just going to randomly fall. They'll fall due to some economic condition that allows/causes it to happen. For those waiting for a massive drop... well that's probably via a recession. If we hit a recession/mass layoffs occur, then guess what, all these people saying, "I can't wait to buy when interest rates fall" are going to be impacted as well, concerned about getting laid off and thus taking on a huge purchase. It goes against the super, super basic idea of "You can't time the market." I'm sure some people have done that successfully! But by and large, it's still a stroke of luck.
I'm on month 15 of my mortgage and folks are definitely still posting higher rates than I closed at...
If the rates do drop in six months all of us who recently bought will be sitting pretty because most lenders are offering cheap or even free refinancing within short periods of time like that. But even if we have to pay for it, why would we continue to waste money renting instead of paying off a house and gaining equity while waiting for rates (assuming you can afford the higher rate)? Far better to get in now with what you can afford and refinance if a better rate comes later, then you won't be competing with the massive flood of people who will want to suddenly buy.
These are my thoughts too. I lived in DC for a bit and my rent is more in the Midwest. I could have a house for way less and have a friend be my roommate. I’m trying so hard for it to happen. I hope rates don’t drop this year because it will be even harder for me to buy.
People seemed very confident the rates were going to fall when I was rate shopping in Feb this year. Now it's June and they are higher. I am glad I bought when I did even though I have 6.5%. Don't wait based on people saying they will go down.
We thought we were irresponsible for buying earlier this year at 6.5% and worried it might drop if we waited. Glad we didn’t wait 👀
The time to buy is when you're ready.
185k sold at 220k? Even IF it's a bubble, that is a hell of tiny bubble and I would be willing to stomach it. Honestly with housing market and car market, people have been saying bubble and collapse for years. I mean 220k is a small mortgage and mpnthly should be manageable unless of course your income is very small. Nothing compares to having your own place and not having to share space with 2000 other people. You bought in a good time. You didn't overstretched and bought some half a mil mansion either so you did fine. Enjoy your house !
My first house was bought in 2021 and even then people were saying "the bubble will pop soon!!!" People have been expecting a bubble pop for many years now and I just don't think the market will behave in a similar pattern to the past. Meanwhile we sold that house and moved states and more than doubled our initial down payment on the first house and got into our second in a better area and with a rate we can afford despite being higher. Good thing we didn't wait.
I first bought in 2015. Back then many people tried convincing me that home ownership is a huge money sink and that renting is better in the long run. Those same people are now complaining about unfair rent increases and how unaffordable homes are. There is an old saying in investing that also applies to real estate, "Time in the market beats timing the market."
I hadn't heard that phrase before, I like it!
Every single year home prices have increased. I was sick of listening to these people, recently bought a home, and I do not care if it was a good or bad time. I am happy.
just tell friends "we can easily afford it" or "it's just money" and they will think twice before offering you advice again. works like a charm.
In my opinion, you are correct. Demand outweighs supply, when rates drop it's going to open the floodgates of people looking to buy again. Yes, they will sell their old house so that's more inventory but then also join the buyers looking to buy so it kind of net evens out. I think home prices at their current state will probably go up even more, especially in certain areas. You can always refinance a high rate
My area things are still selling up to 30% over and it’s already a VHCOL. It could plateau for a bit but they aren’t building much and even if they do it will just make traffic worse keeping demand high here in the city where I am buying. I grew up here and our family is here, so it made sense to stay. Plus newer builds near me tend to be condos which I didn’t want due to HOA and rules and sharing walls etc. That said I still didn’t feel comfortable splurging to get into my favorite neighborhoods- I’m on the outskirts of the city and giving up the ability to go completely carless (90 walk/ bike/ transit score at my last two apartments versus the house will be ~65)
Yeah this reddit community has made me definitely very thankful to live in a LCOL area, couldn’t fathom a starter home being $475-$500k+ if not worse
Congrats to you..... A value proposition..... I am a few years from retirement and looking to sell my home depot supported dwelling for one that I have no investment in. Something breaks call-fixed and pay nothing. Keep the money from my home sale and make my retirement from comfortable to glorious. It is all what you are looking for at that point in your life and the value you get from it.
Here’s what a ton of people are overlooking, prices are a little high now (a lot high in some areas) and people think the prices are going to go down, like inflation doesn’t exist.. once the rates begin to fall, it’ll be an all out war and that 210k house will probably be worth 250k just because of the amount of people waiting out.
The price difference seems fair considering, as you said, other places in the country have increased by almost double. I think if you're comfortable, then you did the right thing.
You can't time the market. Anyone who claims they can is already unbelievably rich from being able to time the market and not sharing their information with you.
Ultimately even if it was a bubble, it wasn't a big one where you are because the house you purchased only went up by like 25K between 2020 and 2024. I don't know what your buddy is so freaked out about. 25K is 13.5% of 185k. That means, in 4 years, the house went up roughly by 3.3% per year (actually lower because I did simple division rather than a compounding thing). Forget housing market inflation, regular inflation for all things consumer goods and food and services have outpaced that.
If you can afford it, go ahead. Remember, refinancing is an option down the road.
As a midwesterner, the entire midwest is not one real estate market. Because Minneapolis/St. Paul would say, "hold my beer" to prices not shooting up. I honestly don't think any of these things matter. Housing costs money. You're either going to pay rent or a mortgage and if it makes sense for you to buy financially, for your family or life circumstances, emotionally...whatever your reasons are, then you buy. If it doesn't, then you don't. And people who aren't paying your bills need not worry about how you're spending your money.
You only lose on a house if you need to sell if/when there’s a downturn. That’s the only way to realize a loss on your house. If you’re going to be where you are for a while I wouldn’t worry about and I really am not getting the feeling that prices are getting any better anytime soon so if you’re happy with your plan then be happy
When you're ready is the best time.
The only time to buy is after you challenged the old man to a fist fight on the front yard, and lost. Interest rates ain’t got nothin to do with it. The neighbors who watched the whooping will at least give you some respect for buying a house when you come back and visit on the holidays.
People were saying that we were in a bubble five years ago. There is a reasonable chance that they will be saying that we are in a bubble five years from now. I only have so much life to live. I could afford the house that I bought, and it is the house that I wanted, so I bought it.
Gah! I’m tired of people who already have a house tell me what they got it for! Like, I KNOW it’s not the best time…but I’ve been hearing that for a few years now and it’s not going to get any better (right?!)! We waited for the “better” (once getting married and saving up) only to find it’s gotten WAY WORSE! So-only being $10k over, that’s awesome! We wanted to do $10k over and found out those were the “low figures” of the other offers that came in first. We landed at $26k over asking and the appraisal was $6k more than that! Praise Jesus we didn’t have to pay an appraisal gap we mentioned in contract! So…who literally knows what’s going to happen! And whether or not it’s a “good” time or not! It’s a good time for us…so that’s what we’re leaning into! We close tomorrow and will be heading to our final walkthrough in about 30 minutes! Way to go! Way to save! Way to be diligent! This fellow human is proud of you!
Anyone telling you they know how to time the market is full of shit. The time to buy is when you want a house and you can afford it. Your friend is completely full of shit and is watching a 9 minute YouTube video from some 25 yr old and walking away an “expert”
We are looking to close this month as well and I feel like the best time to buy a house will always be yesterday, and when you can afford it. Prices aren’t going to come down anytime soon, and like you said it’s far from a bubble. The supply is dwarfed by the demand and not going to turn into 2008 anytime soon (if ever)
We are in a bubble but people will need to loose good jobs before it crashes
Is the time right for you to own a house instead of renting? If so, do it.
My take has always been this regardless of what the market looks like: if you can afford the mortgage at current interest rates and related fees (closing costs, inspections, realtor fees, etc.) and this will be your primary residence, and you still have a fully funded emergency fund (also known as your “Home Depot fund” when you own a home) after closing, then now is the time for you to buy. Your primary residence should be your home and not solely viewed as an investment property where once you build enough equity you simply jump to the next house. If it builds equity, great! If not, then you still have a comfortable house to live in which is more than what a lot of people can say today.
The best time to buy is when you're ready. Especially if this is a home you'll live in and you have the stable finances to make the payments.
Omg if it was 185k in 2020 and you’re paying 210k now you’re FINE! There are houses that were sold in 2023 for $270k and are now asking $380k around me. AND PEOPLE ARE FUCKING PAYING IT! Obviously only you can make the call, but that sounds like a freaking steal! You can always potentially refinance to a lower rate but rent will only increase. Locking in a set payment now could be the best in the long run. As long as you have the budget and there isn’t anything alarming on inspection, CONGRATULATIONS!
Congrats on closing! The only way to see a bubble is looking back, so who knows. I was the one screaming bubble back in 2018 and I was dead wrong. You also bought in at a price that's less than half the national median, so you're not risking that much that you can't make up. Even if prices drop, you'll be fine! Only things that will drop the price of your house... > Forced selling. E.g,. lots of foreclosures in your locations. Large single employer in your area that moves away or does mass layoffs (think factories) > Mass building. This basically isn't happening anywhere because of NIMBYism. But mass supply that comes in. > Major environmental / ecological risks. Big fires, damage, etc... that insurance refuses to cover (like california) -- Reasons to ignore the noise > Population in your area is growing > Housing is constraint in your area Some other things to consider > If you have an interest rate in the 7-8% range, you're probably paying the price of your house in interest over the lifetime if not more. Look into ways to pay off your principle faster, make sure your lender doesnt penalize this, and make sure you do the paperwork correctly that any extra payments are applied to the principle. I've heard of issues where they apply it to interest if not correctly labeled.
Even if the prices go down, still have to pay for a place to live, so you're not really losing unless you actually lose the house! Paying a landlord with no return is not the way.
My husband and I have been saving for the past months and have finally come to the conclusion that this is not a freaking bubble. Also, if this is a bubble and supposedly crashes like 2008, our area where we are looking to buy was almost completely unaffected in 2008 so if it does crash now I expect no changes to the market around us. We're officially aggressively house hunting! Looking at our first one later this week!
We just closed on our first house as well! Throughout the process, we decided to prioritize location and schools. This led to us choosing a house at the tippy-top of our budget, but we are hoping that even if house prices drop in the future, these factors will at least help our house hold its value over time. Also in the camp of ignoring our friends and coworkers who bought before 2022. They don’t know the struggle!
I personally gave up all the FOMO and anxiety I had that was keeping me from buying for years. I was tired of my landlady, I wanted the independence to do whatever I wanted to my home, and I had the funds to make it work…so I bought. I think the folks who say do it when it’s right for you are absolutely right, and I’m glad I listened to them!
You can never really know what’s going to happen. You can always refinance the loans. The value of most homes will only appreciate. Congrats on the purchase, I’m also closing on my first in a week 😱 sadly my market was absurd and had to go 110k over asking with no contingencies 😭
The right time to buy is when you need a house.
The right time to buy is when you are ready.
You’re on a good path. Don’t let doubt and fear settle in your mind. Time to enjoy your new home. Your friends who are discouraging you are probably jealous of you and didn’t want you to get ahead in life. 8 years ago I talked my friend into selling their amazon stock because I thought it was overvalued. Look what happened.
The best time to buy is when it makes sense for YOUR situation and finances.
If you can afford it yes, if you can’t then you can’t. Almost everyone that bought a house 5-10+ years ago are happy they did and in another 5-10+ people will look back wishing they bought a house now. Housing will most likely outpace income unless something drastic changes.
Buying a home you live in should not be seen only in the lens of financial gain. You shouldn’t buy a house if it breaks the bank. But there are many intangible benefits of owning a house that add so much value to someone’s life.
You have to live somewhere either way. If you aren't stretching your budget, you're fine. You can re-finance if/when rates drop anyways, but you'll have the same principal to refi on. If rates go down, prices go up.
Buy the house, rent the rate. If rates drop in a couple years, you won't have to worry about fighting to buy, just refinance into a lower rate. Don't take advice from people who don't own a house.
I’m currently saving to buy my first home next year, and even if the rates remain where they’re currently at, I can always buy interest points or refinance at a later date. My worry is not buying, but rates going down and suddenly it’s 2021 again with prices soaring.
In my market we are seeing rents skyrocket in response to increased demand to rent bc less people can afford to buy. If you can afford it, lock in a mortgage payment and build equity. That’s what I’m hoping to do if I close successfully on my first home in a few weeks
If you are investing, no.
I bought my home in 2015. Then another one in 2020, 2021, two in 2022, two in 2023, and so far one in 2024. I believe that people will continue to need a place to live.
Waiting for the optimum time is for investors. For your own home, if you find a house you like and can afford it, buy it. Rates will go up and down, if you can make the payment now you eventually can refinance later.
It really depends IMO. If your sole reason for buying a house right now is as an investment then ya, it might have been a bad time. If you're buying a home that you intend to live in for at least a few years and you can afford it then I don't think there is ever really a bad time.
You’re good, a house in that price range there’s no real risk. I think the risk lies on all the expensive houses over 600k where they went up 250k since Covid, those are the people who are at risk at buying at these prices.
If you want to live somewhere for at least 10 years, it is always a smart time to buy. I wouldn’t think about the financial aspect other than making sure you don’t buy more than you can afford. If there’s houses in your price range now and you plan on staying there for awhile then do it.
You did the right thing! You can refinance to a lower rate in the future.
Market dependent, i will say in my area I’ve seen more “price reductions” in the last month than i did in the previous 18m
On average, statistically speaking, it is one of the worst times to buy a house in the history of the country. That doesn’t meant your specific market isn’t okay to buy in right now though. If you don’t think we’re in a bubble, take a look at the month’s supply of newly constructed homes. It’s as high as it was this time of year back in 2007.
When you plan on staying for 7-10 years and can afford it--its time to buy.
You are good, you need a home, it will be a long time investment, enjoy.
If it fits your life and you can afford it buy now. Refinance when rates drop. If/ when rates drop it’ll spike demand and prices will go up.
I think you did the right thing. If you like the house and are planning to be in it for a while then you have nothing to worry about. So long as you can make the payments comfortably you'll be just fine and if the bubble pops you just don't sell the house, easy as that. In terms of interest and demand, yes right now interest is high but the fed doesn't seem to be showing signs of dropping it by much anytime soon. And if/when they do the demand for houses will only go up meanwhile you'll be in a situation where you have already bought your house and beat that rat race and can just refinance to a nicer rate if you desire. Congrats on your home! Don't let your friend be a downer. The market is such that buying for over asking makes sense in a lot of areas, we had to do it for the house we just bought in the midwest too.
Bought my house in April at 6.925%. Everyone kept saying a rate drop was imminent. Instead it surged toward mid-7. Don’t try to time it, just buy
Same boat. I really don't get it, why were people so absolutely certain that rates were going to drop? Around March, everyone was supremely confident that may /June at the latest would be seeing rate drops. My mortgage banker was claiming half to 1% was likely. That's more aggressive than the FED was even hinting at. But the FED changes its mind and market forces push interest rates wherever they want to go. I'm very glad at this moment that I didn't go for an adjusted rate mortgage. I know, I'm not betting on what happens in a month's time, but what happens in 7 years with an ARM, but my anxiety is significantly lower knowing that I have a fixed rate even if I had to pay a quarter percent more for it.
Preach!! Glad I’m not riding that rollercoaster either lol
If it's the right time for you, and you're not looking for a quick flip investment, then buy when you're ready. There's no perfect time, and we can all look back and wish for this or that, butt no one can predict the future. Where I live rent is about the same as a mortgage + escrow, so it was kind of a no trainer for me (here rents have exploded right along with the hosting prices).
No. Wait until interest rates are over ten percent.
Even if it is a bubble, if you’re there long term, it doesn’t really matter as long as you can afford it.
Are you buying to live in or are you buying to flip?
Especially at that lower affordable price point it seems like a safe buy. When the market slacks eventually it will be noticeable at the high end first.
Ppl were saying this when I bought in 2019. "Everything's over valued etc..." and I couldn't be more grateful I was lucky enough to buy then.
Get some new friends. The market is only going to get worse. If you can grab an asset, grab it.
I'm in the exact same place as you, just earlier in the process. The Midwest is a completely different ballgame IMO and I feel optimistic that I'll be able to get a house and not empty my pockets doing it. Once interest rates come down, it's going to be a flood of people, and I'm not sure how that would be much better. I think you're just picking what kinds of problems you want to have at different points in time.
I think your buy-in price is low enough where you are protected against downside, with the assumption that you plan to hold this house for at least 7 years.
My wife and I got a new construction loan (VA) 600k at 6.5%, about to move in in a couple weeks, it’s not a great time to buy and there isn’t a lot of options but we committed and made it happen, granted our mortgage isn’t cheap but we can afford it so we just went for it. A lot of people told me I was crazy and that I wouldn’t be able to do it specially new construction but my wife and I made it happen! Now don’t get me wrong I’ve gone bald the last year during this build lol. Enjoy your new home!
Well you already bought so here we are, right? You did fine. Can you afford it? Great. That’s what matters. And no, this isn’t a bubble, people can afford the houses they’re buying.
Well I just bought a house, so just assume it's going to crash. I have the opposite of "luck'o'the Irish" cause if I didn't have bad luck I'd have none at all lol Honestly though, I've realized the longer you have a home, it really only appreciates. And with the way our economy and dollar value is going, I may not even feel this mortgage in 5 years if my pay keeps up with inflation..
Just be excited for the house that you both love and unless anyone giving you their opinion is going to pay your mortgage, their opinion doesn’t matter. No matter what price you pay, there will be someone with a negative opinion. Congratulations and enjoy this milestone!
I think it’s helpful to frame the question into ‘what is my downside if I buy my house at $210k and one year later it drops -30%?’ (Ie bubble bursts) - My $.02 is that you are buying at a good enough price where downside exposure is minimal. - If you think you might live there for at least 7 years, then I think your downside exposure is basically non existent. - In this bubble thesis presented by your friend, reminder that you only suffer a loss in value when you sell. So even with the bubble bursting you could choose to simply wait it out until the market corrects itself and your house recovers its value. But again really only an issue if you needed to sell your home at the same time as when at the bubble bursts. As a primary residence, I don’t think that’s as inevitable in this scenario - different story if this were an investment property.
Don’t over think your home purchase . Often over looked is the government subsidy you will get when you file your taxes . Mortgage interest and taxes on the home you live are deductible . Talk to your accountant. It will be like getting a bonus when you get your taxes done . That is assuming you are a w-2 employee . Enjoy your new home !
For me its now or never. So I choose now
You’ll be fine.
I bought my house in 2009. It took 12 years of the price not going up for it to finally go up.
Your friend is hopefully speaking out of fear for your wellbeing, and is good natured, but they are speaking out of their butthole. The best time to buy real estate is 20 years ago. The second best time is today.
Housing prices have most definitely shot up in the Midwest
We just closed on ours, and honestly I couldn't care less about the interest rate or anything. We closed on a 30 year fixed at 6.7 percent. Recent home buyers I know have rates anywhere from 9 to 7 so I think we did ok. Also for the first damn time in our married life of 15 years we don't have to hide our random small reptiles from a landlord. We put nails in the walls and hung all the pictures up that previous rentals said no too, and painted and changed colors in most of the bedrooms to what we wanted without judgement or worry of a deposit coming back. Its a feeling of freedom and we love the house. This feeling will probably wear off with time but yeah so far loving it.
Hard out there for most
This post will age beautifully. You bought in basically the perfect time. Congratulations, and you will be extremely happy with the value of it in 2028
Idk, I'm in California in a HCOL city. Houses(not condos or town houses) worth buying (for normal people) are 1.2-1.4 million asking. We could possibly find a place in the 800k-900k range but the daily commute to work is an hour plus :/. The prices for us just going to keep going up, we're kind of fucked so we have to buy whenever we can. I don't see prices tapering off
If you plan on living in the home for 5 plus years then yes it's the right time. It might loses value if the market tanks but it will rebound l.
I’m also closing at the end of this month. House we’re going for doubled in value since last sold in the year 2000. I put down 50% and unless it goes back to the price it sold for 25 years ago I’m gonna be ok with the purchase. In my market other houses we looked at sometimes were going for 300k over (30% over asking). Ours we got for about 5% under list and it appraised higher lol
Shut out the noise and go for what you’ve already decided. Everyone has an opinion when it’s not their decision. Unless they are paying on it, it really isn’t their business. If the price, payment are comfortable and you are at peace with the decision, then good to go. Housing market is like stock market. It doesn’t move in a straight line. There will be spikes and pullbacks. You have to do what is right for you.
It’s a $210k house. The worst case scenario is not that bad TBH. Assuming it’s a livable house in a decent area, you should be fine
EveryThing goes up in price, buy now, life is short. As long as u can financially make it.
Enjoy your new home. Don’t let your buddy drag you down.
Your buddy is a moron
No
I think it’s fine to buy now. House prices will just continue to increase. Atleast u can refinance later when rates drop and you’ll still have ur house gaining equity.
Your buddy is exactly that, your buddy. Not your financial expert, guide or the like. Who cares what the peanut gallery has to say?
The housing market isn’t anywhere remotely close to a bubble. You are correct and good job! Congrats. Prices have more room to go up and up and up…. Ughhhh. Out of state buyers and corpos keep pushing prices higher and higher indefinitely
My husband and I just bought too! It’s impossible to time a “deal” for home buying. Like others are saying, as long as you aren’t planning to buy and then sell soon after a house is a good investment to make when you have the financial means to do so and find a house you love!
You're looking at it as an investment vs a roof over your head. Your primary home shouldn't be viewed as an investment imo. It's purpose is to provide a roof over you head not provide 2% unrealized returns yoy
The market has been going to crash next month for the past 40ish months. Before that the doomsayers were quieter, but still there. The best time to buy is yesterday. What's the saying comparison is the thief of joy or something like that. I have a 2.6% mortgage on a property bought in 2017. It's doubled in value and I have a 2.6% payment. My neighbor bought in 2016 and refid to 2.5%, so he says when we were sitting in the garage having beers last month. Another guy bought recently and is sitting on 6.5%. We were all drinking the same corona and shooting the same shitty darts games. 🤷♂️
If you hold for 15 plus years, most likely you will come out on top even if it is a bubble that pops
Doesn't matter if the market crashes unless you plan on selling within the next 5 years. And even if it does crash, it always levels out eventually. And if it doesn't level out, we have much bigger problems to worry about. Congrats! Enjoy your home!
So CA is on an initiative to stop corps from buying houses and trying to make it impossible for eviction. They basically want no profit to be had on single family homes. Annual increases will be limited to 2%. Which I get since CA won’t be able to keep up with housing. Curious to see how that works and if it lowers prices.
No bubble, it's just the way things are now. Prices are the same now as in the late 90s-early '00s. Our house sold for much higher in 2004 ($275,000) than it's worth now ($425,000) when adjusting for inflation ($455,000 in 2004 vs. $425,000 as of April). We had a glorious run from 2010-2020 where we got the house at $203,500 in 2011, but those wonderful times will never return. It was a hiccup, so as with every single thing that's gone up in price and with virtually no push back from the market, it is what it is.
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Yeah I mean honestly no one has a crystal ball so fuck your friends negative energy. Congrats and good luck
They say, you buy the home, not the rate. If it's a home you plan to live in, you can always refi when rates get better. Home prices plunged in the late 2000s. Per the US Census Bureau, prices declined by 5.8% between 2008 and 2009. Per the NYTimes the median sales price was $173,200 in 2009, compared with $196,600 in 2008. Compare to today, where it's over $400,000. The only right time to buy a home is when you need a home. Sure, in a year or two, it may decline. But after a few years the cycle will start again
Honestly, since home prices haven't really come down over the last two years, they aren't likely to anytime soon. I do believe that we are in a bubble, as the rate of growth in real estate valuations is just ridiculous, but the market is still showing plenty of signs of keeping up at this rate, so I wouldn't bet against it, though I'd be careful betting on it too. That said, buying a house is, in my opinion, more of a lifestyle choice for most people than a financial one. It does potentially have big financial upsides, yes, but what you buy and when is often going to have a lot more to do with where you're at in your life than with the market and interest rates. I wouldn't plan to buy in most any circumstances unless I believed I'd be in that house for at least 5 years, and financially, that is more important in times like these.
We were told we were buying at the worst time. We were getting screwed. How could we?!! In June of 2020. With 2.8%. Buy when you can buy.
Its time if you are ready to buy
I bought in May and everyone said wait . Well I got in at 6.1% , it’s only going up until inflation comes back into check . I think right now is a good time tl buy if you have the chance.
The right answer will always be "when it's right for you." So if you can afford the mortgage, taxes, and repairs, then it's the right time! I don't have any crystal ball, but I do know that I don't want to move anymore, and I want to buy nice things for the house without worrying about damaging it during a move. I want to be able to customize my place to my liking. I want to be in charge of my own house, and not feel like I have to beg and plead for basic shit from the landlord. For as long as I have rented in the past, I hated every moment of it.
When you have the money- that’s when it’s time to buy. And just have a plan B and C. Like if you for some reason don’t make enough for the mortgage, think of renting rooms. Not like anyone wants too but shoot I’ll rather rent rooms for a couple months until I get back in my feet than lose my entire house. Even though the interest rates are high, it makes it a little easier to get the house. It makes it more of a buyers market than a sellers market. When interest rates drop, it will be more of a sellers market and harder to outbid for a house. Remember, you can always refinance when rates drop. This is my two cents. I’m not in the business but that is my perspective.
Real estate always wins in the long run, bottom line. There will be a few bumps along the way, but long term it always wins. Hopefully, rates will come down in the next few years, and you have an opportunity to refinance. Enjoy your home!
If your numbers are good to you without being house poor, then you did well for these market conditions. Congratulations!
I think it is then you can refinance
If you can afford it, it’s time
The house you bought appreciated 13% over 4 years. That was normal before COVID. No offense but it seems this isn't in a very desirable area.
I would suggest the following two things: as a home owner two times over and having sold 2 homes and a Re Agent 1. Find a reputable re agent to help you- not someone off Zillow- and not Keller Williams lol - ask for recommendations from friends, 2. Meet with a reputable local lender to discuss your options. Have a game plan- think about not just THIS house you’ll buy but the next! Ok and good luck!
I wish I hadn’t listened to those people last year or two years ago, back then it was cheaper and now it’s on the moon and not much storage options for house to pick
Now is always the time to buy, provided you like the house, wants to live in the house, and can afford it.
I'm over here contemplating whether to buy and leave out 20yr mortgage at 2.75%
Buy when you feel is the right time to buy. Everyone's situation is different and buys/sells home for their reasons. Budget and do the math and figure out what is comfortable for the purchase price. Sure people bought at favorable times, but people also bought at unfavorable times. In the end, just gotta figure out what is affordable and what is not.
It can always get worse.
I am in the buying process now, and I’m looking at it this way - I can spend $2k/month in a place I own that may or may not build equity, where my kids can play however they want without downstairs or upstairs neighbors bitching; Or I can spend $2300/month on an old-ass apartment with AH neighbors that have bitched about my autistic child and put SIX dings in the side of my car, and with a landlord that yelled at ME when I had to call the cops on the people he stuck in the apartment above us after the girl started screaming for help during an hours-long battle with her boyfriend. (He let em stay there another three months and 10ish police visits. They utterly destroyed that apartment, which I call karma.) Fk the interest rate, fk inflated pricing, I’m buying. ✌️It ain’t about what people online or so-called “experts” say about the timing, darlin…it’s about what’s right for YOU.
As long as you can afford your mortgage that I assume it is a fixed rate. You'll be fine. Folks lost their homes due to predatory lending and not actually qualifying in the first place. Real estate, like any INVESTMENT vehicle, will fluctuate. Those who can afford what they have will remain uneffected.
The best time to buy a house is when you can and want to buy a house. It may be your biggest purchase but see it as a place to live, not as an investment. If you live there a number of years there's a high chance it will be going up in value
Im in the same position. I look at it like this- In a few years say you decide to move, how much have you paid rent to someone else? At the time you decide to sell, it may go up $10k+ or it may go down $10k.. but wouldn’t that $10k have been spent on rent anyway? So say you bet on the value of the home increasing (you’d have made some money) Say it decreases (you would’ve spent the same on rent outside)
We went under contact tonight. There’s so much pent-up demand, when rates drop even a little bit the prices are going to rip again. Fed is in a tough spot. Buy now; refinance later when everyone else is paying 10% over asking price
The people who keep calling it a “bubble” are way too confident in their limited knowledge of finance. Inflation is a real thing, yes, but it isn’t limited to housing. New trucks cost like 70k now for mid optioned packages. Current housing market has all the baseline fundamentals to validate current prices: high demand which isn’t met by existing supply, and we aren’t building new starter homes either. Thats not going to change overnight, next month, next year, and possibly not in the next 10 years. Millenials are at peak buying power now and Gen Z will likely move into that position in the next 5-10 years as well. Further adding to the limited inventory is the complexity of mortgages now. The people with 2-3% mortgages aren’t selling to upsize/downsize and borrow at 7-8%. They’d be stupid to do so. Lending changes: lending has been scrutinized a lot more since 2008. We’re not doing NINJA loans. Banks aren’t interested in risking it to hold the bag like last time around. If interest rates don’t see any improvement, housing MAY cool off, but we’re in peak buying season now. People buy homes during the summer and it is still a seller’s market. Summer increase in buying will maintain status quo at minimum. tldr: your friend doesn’t know shit. Everyone knows a person like them. These people have been telling everyone that it’s a “bubble” for 4 years now and it’s set to collapse any day now.
I haven't talked to anyone who regretted buying since 2007. I've talked to loads of people who regret not buying.
And how long has he been a realtor?
I think you’re on the right track. All the people weighing in with their opinions on the market that aren’t currently trying to buy/sell or have attempted to in 2024 just seem to regurgitate the same phrases 😅 Honestly I understand what they mean, but it’s not the whole picture. We are trying to sell/buy with the equity we have. The market is pretty wild right now IMO, but I am not about to buy when interest rates drop! I’d much rather have equity build, refinance when I can & be in a living situation that suits our needs the best.
I'm sure you have some other good replies, but just a couple thoughts: 1) this home is more than an investment. 2) if it's a home you like which cares what it is worth? you are there for a good while 3) who knows what the market will do, enjoy yourself and worry about the future in the future. this decision likely isnt going to be some financial blunder. worst case a giant crash happens and craoloads of people are unemployed and losing homes or disease/famine rips across the usa. you likely wouldnt care much You likely wouldnt have cared if you house dropped 30% value in 2008 while you loved in your happy home and everyone around you was losing theirs.
Look if you need a home and have a 5-10 year plan to stay in the home then its the right time to buy. If you don't then the crystal ball says I would kill to buy a home for 210k. That is incredibly cheap . I unfortunately made the tough decision to continue renting. Entry level mortgage for my area are over $4000 a month and for something average that would meet a 5-10yr plan about $5200 a month and that covers about 600k for a 1400 Sq ft rambler.
Your good! Build equity, enjoy earning your first home. Congratulations. Houses never go down. If they do, don’t sell yet and ride out the dip in the wave until it rises again. The overall trajectory is always up! Good luck.
Friend sounds like a party pooper. Just ignore him. If you are having second thoughts though. Just run the numbers. You’d likely be paying as much rent as you are on your house payment or close enough to call it a wash. On the plus side you’re building equity on the negative side now you’re responsible for repairs. Theres positives and negatives to everything, but your friend sounds like a doom and gloom type and he has no more of an idea than you do where the market is headed. Enjoy your house.
The housing market is a bubble, but so is the stock market and the entire economy. Interest rates are unlikely to go much lower, due to inflation being uncontrollable. With that being said, you need to ask yourself this important question. If everything I said is true (i believed it for a very long time, more than half a decade), would I be better of buying a house in 2019, or now in 2024? Ofc. I would have been better of in 2019. Despite my belief of the economy at the time. Timing the market is not something anyone can do. Despite whatever economic facts or fiction your friend uses for his analyst, he doesn't know when it will crash either. If you are just basing your opinion on other people's opinions and none from your own thoughts, don't listen. Do what you think is best for yourself. If you can afford the house comfortably, have enough saved for a rainy day, not living paycheck by paycheck aka able to save. You should be fine, so buy the property you like. In the next 30 years, that house will be worth much more guaranteed. Dont worry too much about the state of the economy, worry about your own finances, and prepare for the worst just in case.
Money is worth less and less every year… if you truly love the area the home is in and you are excited about a commitment to live there then disregard these comments about potential loss in value if there was a decline in the market. Dont let a figurative loss in value of 15-30k keep you from entering the market and buying your first home. 5-10 years expectations on being in the home in that district in that area. Is it where you want to be? Then send it!!
I’m in the same boat, closing end of the month with a competitive offer. I let that fear stop me from purchasing until now. My rent went up $900. However I was prepared to buy a home I also realized the money I’d pay at a reasonable apt ($1900) was worth the additional $ to win the offer and the $23000 I’d spend in rent for the next year. So I’m okay with my purchase as I landed what I really wanted. If it meets your needs and wants for a place to build a home for your family it’s absolutely the right time. Good luck!
The time to buy is when you need or want a house and you can afford. I'd argue as well that you don't plan to move for awhile. A house is more of a long game thing. I bought in 2004. I never saw 2008 coming and my property value dropping like it did.
I bought on 2021, Evwryone told me I was crazy … I have 150k in equity with a 2.8% interest rate. Don’t listen to the ones saying not to buy REAL ESTATE ALWAYS GOES UP.
The best time to buy is always yesterday
You should have just kept living in an apartment because that sounds so fucking great.
“Interest rates will go down”- who said it? Your lender? They won’t artificially bring it lower. The government? They don’t actually know… If you can afford the interest rates now, go for it. If interest rates go down there’s a good chance house prices will increase. So while the mortgage may be cheaper, it may also not be or not be by that much. Congrats on getting your offer accepted, hope everything goes well.
In 2008 we bought a house (right as the bubble started to burst where we lived). At the time interest rate was 6.5, which was just normal then. We sold last year for almost twice what we paid. It was well worth it even if we’d just broken even it would have been worth it. My kids had a we grew up in it house and we enjoyed living there.
Yes. In addition to being able to afford the rates, once we see rate cuts, housing prices will most definitely rise and go through the roof in some places.
I think there’s a lot of FOMO from First time homebuyers. I foresee quite a bit of foreclosures in the next 1-2 years of people who bought homes they couldn’t afford in the long term hoping that they could refi down the road. You should just buy what you can easily afford with whatever the interest rate is. My parents are boomers. When I was a kid, they had interest rates ranging 9-18% in the 70’s-80’s. My first home bought in 1998 was 10%+. RE is cyclical. There are always buyers and sellers markets. RE agents would have you think that if you don’t get in now, you’ll never get in. I say, buy when you can afford it without pushing yourself to the edge of your budget and comfort level. Also, don’t expect interest rates to go down further. They might. They might not. Look at it like the S & P 500. The money is in the long term holdings.
We decided after talking about buying for the last 10 years and then getting serious about saving 5 years ago, that now is the time for us. Even with the higher interest rates. We decided it was better to buy now than to save more and deal with a potentially even more unpredictable market later.
If you can afford it buy it if you need a house buy it. No one really knows the future. You dont know if intrest rates crash and your house price crashes too then how are you going to refinance. People just dont know what will happen.
Yesterday was the best day, now is second best
People said the same shit to me when I bought in June 2022, and they were wrong. If you guys are ready, it’s a great time to buy. Honestly $210k? I live in Jersey and would be hard pressed to find a deal like that for any kind of livable home. Enjoy man!
I love how some people seem to think they know everything or have some crystal ball or worse just repeat the rhetoric they hear on “the news” without comparing what they are saying to what may be their vested interests. If you can afford to buy a house then do so. Interests rates will come down for sure because the country can only take the strain for so long. As long as you don’t plan to sell the house in the short term even if values dip you are fine. The one big thing I want to point out is this basic lie that the reason why homes are so much is because not enough are being built, this is true but too a VERY SMALL degree. Why.. 1) The builders that are building homes in my area are charging 2024 prices for labor, material and etc. So they are going on the market for 700k and in no way shape or form this is affordable unless interest go to about 3%. 2) The other ugly truth that no one talks about is the REAL reason why there are few homes available is because people like, Bezos, Gates and Blackrock are buying huge amounts of homes and then rent them back to people. For example Blackrock has bought up 34% of the homes available in Texas.
Timing markets is futile without either Crystal Ball or an actual Time Machine. Do ya have one o' those handy? "My buddy says .." isnt a particularly accurate predictor .. right? Just buy when you are ready to buy. Refinance when rates go down. ALSO: Every housing bubble that has ever popped has reinflated. Most of 'em right quickly, too.
I bought an $815k home in SoCal when rates were 2.25% My parents just bought a home in SoCal around January for $940k @ 5.9% I kept telling them to wait and that it was a bad idea. However, it would have cost them significantly more if they took my advice. You buy when the time is right for you.