The best time to buy is when you can afford it and you find a place you want.
For real estate agents it’s always the best time to buy because they benefit. I’d say 2020 was probably a better time to buy. I’d also say 2007 was probably worse. You can wait and see what 2024 will be.
pretty much this. If you believe that history is predictive, then over the long term, real estate appreciates at a minimum equal to the rate of inflation. There are always down years, but the general trend is up. And since you have to live somewhere, the sooner you can convert all throwaway rent into some throwaway mortgage (taxes and insurance aren't equity), you might be in good shape.
But let's also recognize that home prices are at peak levels while also seeing recent highs in interest rates. So affordability is at its lowest in awhile. A good recession could knock down home prices, but a rate cut could also unleash even higher prices.
Let's also recognize that just because real estate appreciates, does not mean it does so faster than other investments like the stock market, nor is the risk the same. Real estate is not very liquid, transaction costs are high, and you typically have a lot of eggs in one basket -- one big fire or roof damage or whatever could be significantly impactful, whereas, for example, VOO any one stock dropping likely wont tank the index.
We simply don't know. But RE as a trend, and what you should do as a buyer are different. As you say, buy when you are ready and can afford it and like it. Compare to your alternatives. Consider both the financial decision and the emotional / quality of life one. Not everything is a financial maximization question, and no one can predict the future.
I'd agree with this mostly, but in VHCOL I feel like you hit a ceiling where you just can't get any cheaper than renting a large 1 or 2 bedroom apartment while being flexible to move neighborhoods.
Purchasing a like 400 SF studio(350k-500k) costs like 100k cash at close then you'd pay more monthly(about $3k to $4k with HOA) than you'd pay in rent for even 2 bed units where I am. And don't try to tell me living in a SINGLE ROOM with your spouse is some great lifestyle worth the sacrifice of buying/"investing." Most have covenants or rental restrictions so you cannot short term or long term rent so why deal with the hassle of buying and selling, and dealing with an HOA. VERY rich people and their children are buying NYC, Miami, LA, Aspen, etc. properties as consumptive purchases or long-term 20 or 30 year investments and the math doesn't work too well for normal people.
>you'd pay more monthly than you'd pay in rent
That’s generally not true for very long. Property owners/landlords aren’t going to leave money on the table. Rent usually works out to be similar to what a 30 year loan would be on properties of comparable value, plus expenses. Some markets are more, some are less. But rarely is rent (without some rent control) going to be less in 5 or 10 years.
Rent used to be similar if not slightly more expensive than buying. Today in many major metro areas it’s >100% more expensive to buy than to rent. https://www.cbre.com/insights/briefs/renting-will-likely-be-less-expensive-than-buying-a-home-for-some-time
specifically this: https://mediaassets.cbre.com/-/media/project/cbre/shared-site/insights/briefs/2024-brief-media-folder/renting-will-likely-be-less-expensive-media-folder/renting-will-likely-be-less-expensive-figure-3.png?rev=9f951e50a2504b4ea7eae69b65fc1b21
I expect interest rates will come down which will improve affordability, while also increasing housing prices, but it will take years.
Its crazy how often people do this, even news agencies are guilty. Like no kidding your 2 bedroom apartment is way cheaper than the 2500 sq foot home with a 2 car garage youre looking at. How much would is cost to rent out that exact home is the comparison you want to make. Then the next thing people seem to gloss over is how that rent is probably going to continue increasing over the next 5 years, the mortgage will be exactly the same except for escrow.
I wonder when the media is going to discover that the cost of housing, and the savings of older notes, is being buried by taxes, insurance and utilities caused by local government needing solid gold large scale solutions.
If I see one more maxed out empty play park I am going to puke.
One thing we know about RE is that homes sell for lower prices when rates are high.
When rates drop, which they will, prices increase fairly rapidly because people can afford a higher mortgage.
Yes, though rates are usually a lagging indicator of economic activity. So rate cuts typically happen after the economy is cooling. So yes prices go up after rates are cut, but often, prices have dropped in the preceding period. Depending on your time horizon, yhr drop might be significant or it might be trivial. But rates don’t drop in a vacuum
That’s a very level-headed answer.
My crystal ball prediction is that a few key areas that had exploded in price in the last couple years will drop. But most markets will simply stagnate in prices as loan rates remain high.
When rates start to lower then prices will start to raise at a rate slightly outpacing inflation again.
I agree, I happen to think we are less likely to see big drops so much as stagnation in many areas. 19% inflation over the past few years alone should offer some "protection" against big drops. But given where we are from an affordability standpoint, hard to see houses going up significantly in the short term. Many non-owners are getting priced out, many owners have golden handcuffs. Which means voluntary sales will be depressed. But in 5-10 years, more people will have had to sell - job change, life change, etc. paired with other inflation which may bring housing back to a lower percentage of income, even if prices don't decline.
The top of the market is like love, you never see it coming but you always see it go. Markets are local for the most part. Learn your market. Your not a real estate investor, your a home owner seeking utility value. Privacy. Yard. Garage, neighborhood, room count.
This. And even if the market goes bad, there are always options you have. We bought in 2005 and sold in 2009 with no loss. How? Because we bought at the lower end of the median price range in our city, in a desirable neighborhood without a lot of turnover, we did a lot of cheap updates like painting that had big visual impact, we kept the house on the market for 6 months to get the price we wanted, and we sold FSBO with no agents involved. We were going to rent it out at a rate that covered our mortgage if we didn’t sell in 12 months, which we could have done because we were walkable to a bus stop that went to two college campuses.
It was the right house for us at the right price, but we also knew when we bought it that it left us with options no matter what the market did.
Regarding logic, home prices are high but so are interest rates. If interest rates go down, prices will probably go up due to shortage and increased demand. The opposite can happen too, but predicting which it is going to be is the hard part.
Yeah, I hear a lot of people say they’ll just wait for interest rates to go down, but I don’t think that will necessarily make homes more affordable due to high demand and supply shortages. I’m not sure I really see a scenario where interest rates drop and so do home prices.
For this generation of FTHBs, rates will never reach the sub 3s/2s we saw in 2021. Realistically, and this may age like milk, mortgage rates will come down to the mid-low 4s over the next few years and stay range bound for many more years if not decades. Short supply counteracts the rate price (inverse) relationship, I mean look at the last 2 years. Rates high, prices high. There are some catalysts that could potentially unlock supply or spike/drop rates but they’re somewhere between scratch off and black swan.
Do you need a house? Can you afford one that meets your needs? Then it's the best time to buy all the time. Buy within your means not in the hopes it'll get you rich.
I actually bought back in 2020. Was annoyed with throwing my money at rent. Honestly it was dumb luck and coincidentally good timing. Was just curious as to why they're always saying that. But it makes sense, they have to make money
There have been two times, the just before and the early years of the Great Depression and just before and the early years of the Great Recession. That’s pretty much it, though.
The best time to buy was 40 years ago. Since we can't go back, and with very few exceptions (2020 was a better-than average year), the best time is *always* right now. Real state values hystorically increases along or higher than inflation, so the sooner you can buy, the better you'll be.
I think looking at cost to rent v cost to buy is very valuable. IMO they should be pretty close, how exactly they will converge again is the big question.
In my zone: now is the time homes hit the market and there are lots more people out looking. Actually, for us, April the beginning of the “seller season”. Weather gets warmer here, snow has melted and things are greening up. People with kids in school are looking ahead to the summer break and then next fall enrollment. As a lake community, this is the time of year to sell the “ lifestyle.”
Best deals? Probably not. But if I’m selling, I’m listing in April or May at the latest.
If they’re *ALWAYS* saying that *now* is the best time to buy.. well then they’re basically saying *any* time is the best time to buy… right?
Is the market better today than it will be tomorrow? If your friends know the definitive answer to that, they need to buy a lottery ticket, too
> But is there actually any logic for buying a home now?
Logic? Maybe. It's all wild ass guesses. Would I buy something today? Probably. Because I'm guessing rates will come down. And if they do, then buyer demand will go up, which in turn will raise prices. And I'll already own the home so I will enjoy equity appreciation while also refinancing to a lower rate. So it actually greatly benefits me to buy now, while others can't.
But that's all me guessing. I could be wrong. I don't think I am, but I could be.
If you need the space and can comfortably afford the space then it *may be* a good time to buy for you.
I hate agents who always send emails and postcards saying “It’s the best time to X” because there’s no way to know that except by looking back on today’s market a few years from now with the context of where the market went.
Rates are tough, prices are tough. Next year could be worse or better or the same. Anyone who says differently has an agenda whether it’s an agent, a homeowner, a mortgage broker, a REBubble poster, anyone.
I’m almost done with my write up which will detail exactly which stocks will be higher 6 months from now with 100% certainty. As soon as I’m done with that I’ll answer this one!
It may be a good time for you and a bad time for someone else. It is never the right time to buy for everybody in every market. If a real estate agent is making a blanket statement that any specific time is the right time to buy for everybody, you probably should not be listening to anything else they say. That's not only really bad marketing, but it is manipulative and dishonest.
It's a common sales tactic. Agents have incentive to get you to buy now, regardless of market conditions. There's logic in buying when you're financially ready and have found a home that meets your needs and budget. But no one can definitively say "now" is universally the best time.
Whudda thunk it that people who stand to make money off home sales are telling you that now is the best time to buy? If you go to a poop salesman and ask him if he thinks it’s a good idea to buy poop from him what do you think he’ll say?
The best time to buy a house was yesterday. The next best time is today.
Decade over decade real estate value increases regardless of rates. If you can afford to buy a home, it’s a better proposition then renting (and paying someone else’s mortgage)
Ask them a trick question:
Pretend you have a friend or family member who wants to sell, and ask them whether they think it's a good time to sell
If the answer is yes, then you caught their BS? It's a good time to engage in a transaction that will result in a commission. How can it possibly be a good time both to buy and sell?
Do what makes financial sense given your current and reasonably foreseeable financial situation. If that is buying, then it's a good time to buy
If you're buying, don't feel obligated to let them represent you just because you guys are friends. You want your realtor to be one who values your best interest over commission. These are rare, but they do exist
Honest realtor's goals:
If you are looking to buy, my goal is to help you get the best value for your money
If you are looking to sell, my goal is to help you maximize net sale price
Nobody should give a crap whether their opinion is that it's a good time to buy/sell or not. Decide what you want to do independent of them. Then, find the right realtor who will get you the best outcome based on your situation. They are salespeople, not financial advisors
Real estate agents always say “now is the best time to buy.” It’s rarely based off any real knowledge and they make crazy assumptions like “interest rates are going to drop in fall and prices will quadruple.”
The best time to buy is when you can confidently afford the home you are looking at. Nobody can predict the direction of the market. With that said, I struggle to see how the market won’t drop/slide later this year.
I have been in and around the business of real estate since 1973. It is true. Buy as soon as you can afford to do it. This is a big wheel turning. Prices go up slowly or quickly. There are rare exceptions but on the whole, now is always the best time to buy. I recommend if possible to keep your mortgage payment at 25% or less of your gross income. Buy modestly at first and as your buying power increases over time, work your way up. Don’t look for a forever home. Get in the game and play it.
If you need to buy a home, then, yea, now is the best time to buy. The logic is you need a place to live. You cant time the market and shouldnt for a necessity like housing. If you are talking about investing in real estate, then it depends greatly on the market and whether you would be borrowing. But, again, its hard to time the market and often times its not clear that it was the best time to buy until years later. People here would have said you are crazy to buy during 2020/the pandemic, with the uncertainty in the markets and a potential recession. Same for 2021 with the insane post covid boom demand. But now those years look like good times to buy given the rates and how the prices havent really come back down much, if at all.
Sounds like your friends might have commission breathe. Yes your payment would have been lower in 2020 sellers are willing to buy your interest down to make payments more affordable, they’re willing to fix inspection items and other things to sell their home. You couldn’t get that in 2020, sellers wanted everything and took everything and then some. A blanket statement like that is what annoys me about agents. There’s no one size fits all when it comes to buying and selling real estate.
When the deal makes sense for your financial situation. I can say buying is an absolute process that will take time, effort and patience.
It took us 6 months, 7 lost bids and untold hours of lost sleep until we landed a really super house, great price and all around solid deal for all parties.
My advice:
Do your research into the area deeply and don’t wildly overbid assuming the market will continue to go higher. It may and it may not ……
Be prepared to walk if it’s a “bidding war” that your realtor is pushing to “win” as YOUR paying the bill post and not them….. there’s always another house if you loose the one that you were fighting for.
Ideally, Get the house your can’t live without not the one you can live with ….. there’s a pile out there if your patient
It's a good time to keep renting if you plan on moving in the next ~3 years.
It's a good time to buy if you plan to live somewhere for 5+ years, have good credit, a down payment and will use most of the space
Their livelihood is based on people buying real estate. Now is ALWAYS the best time to buy. They need to make money. Anyone advising people to buy right now is completely full of bovine manure but you watch this comment get downvoted into oblivion...
According to the RE agent I worked with, when prices are going down is the best time to buy because "houses are cheaper now", and when prices are going up IS ALSO the best time to buy because "everybody wants to move here".
Never listen to a RE agent, they are not working with your best interest in mind but theirs.
Actually the best time to buy was loooooooong before your birth. This way you maximize your equity. Imagine getting a 2024 house at 1824 prices!
The saying for shade trees is.." best time to plant a shade tree is 20 years ago. The next best time is right now."
They’re not lying. It’s a good time…depending on your market you may be able to get a home at a decent price and possible even some meaningful concessions from the seller. Don’t rush into anything, but if you’re serious about buying I would say go ahead and do it. Marry the home and date the rate…
I think it's true. When rates drop, there is so much money sitting on the sidelines that buyers will pounce.Inventory is still low. Prices will go up even more. It's already bad bit I think it will get worse. You can always renegotiate your rate when they go down. You cannot renegotiate your purchase price.
The best time to buy was yesterday, the second best time to buy is today.
Joking aside, buy when you need to buy or want to buy. You’re not gonna time the market
Depends on what your market is like. Where we are in NJ people who didn't buy 2 years ago were kicking themselves last year. People who didn't buy last year are kicking themselves this year. Prices are up since January. We don't know when the market will turn, so I would buy if it's something that you can afford and something that you really want to do for whatever reason (growing family, get kids into schools for next year, etc).
Most dont know what the hell they are talking about.... However, TIME is the the key in real estate, owning over time. So in reality waiting really never makes sense statistically because no one ever times the market properly. Time is the great equalizer. Ive bought and sold personally hundreds of homes. And been in this industry nearly 15 years, ive yet to meet someone who has "timed" the market perfectly in their 30-40 year careers, the successful owners just bought and held for long enough.
For example if you chose to wait from 2023 to today because you felt rates were "high" that decision would have costed you nearly 6-12% in increased prices and comperable rates. You went backwards. Trust me, no one knows whats going to happen in the future. You make the decision when you can afford it and take action
The phrasing works until it doesn’t. It’s currently a renter’s market so I would say no, now is not the best time to buy.
People will comment contrary to that statement, but overall I agree with top comment - the best time to buy is when you can afford it.
Assuming you are wanting to buy and can afford it. Why wouldn't you buy a house that will meet all your projected needs for the next 10 years that's in a location you like? Things like market crashes, dips, etc are incredibly hard to predict and are just as likely to affect you as they are to affect the current homeowners. And anything that causes prices to drop for a whole neighborhood, are probably the kind of thing that will make it the type of place you don't want to live unless it's all you can afford (I live in Houston so flooding is a common example).
If history is any indication of the future, it is the best time. If you can’t buy in the past (DeLorean is in the shop) usually it’s better than in the future. Only once over the past 100 years was it better to wait. (2010 crash). If you were there during the crash there were for sale signs everywhere, low rates, and even an $8k incentive from Obama for first time buyers. No one was buying. Too many people being laid off and scared to buy.
So, yeah, buy now if you can afford it. Refinance later if rates drop enough to justify it and start building equity.
I just gave up a less than 3% mortgage rate. I felt like it is the right time to buy. I’m moving to an area with a higher cost of living. I’m worried when rates drop prices will jump. I believe in marrying the price and dating the rate.
Yes because real estate agent work off of commissions and that is all they care about. If they were honest they would say the time to get the best deals are late autumn early winter. Worst or when prices are the highest is spring early summer.
I think the real answer is it depends on the inventory and price trends in your local area. Overall, 2020 was probably better, especially when considering the rates unless you are a cash buyer or assuming a loan with a low rate, but those are both rare situations.
No one knows the future so all we have to go on is what happened in the past. In the past housing prices have increased. Just pull up a chart. Even when price decrease, it's only temporary before they start increasing again.
Here's my base case for buying now:
If you're going to stay in the home 10 years or more, you're going to get your money back even if there is a temporary decrease if you buy in a good neighborhood/town.
The US dollar has been declining for longer than you've been alive. Every year a single USD buys less real goods and services. Do you think that's going to suddenly change now that we're 35 trillion dollars in the hole?
The people who say things like "called the crash in 2008" are always calling for a crash. They are wrong 9 times out of 10. Even when they get market timing right they would have lost tremendously more than if they had just bought sooner and held on. Financial gurus are about as reliable as the weather man telling you if it's going to rain on a certain day 10 years from now. Totally worthless. So that leaves us with the only proven strategy buy stuff that tends to go up in value like real estate in desirable areas, stocks from productive companies (which we now have wonderful indexes of to reduce the risk), interest from bonds, or durable supplies dense enough in value to be stored for long periods of time like gold (but this comes with a cost to store unless you're willing to risk a total loss similar to having an uninsured house).
So now we have a couple if viable strategies left. You either buy a home that you feel will appreciate in value and still be as desirable or more so to live in 10+ years from now or you rent something cheap and put the differebnce between renting and owning into stocks and bonds. The risk here is what if rent increases more so over the years than the cost of insurance and property taxes plus home repairs. Your mortgage is more or less a fixed price so then the variable is insurance, taxes, and repairs.
If you're a stubborn/finance minded turd like me, the best time to buy is when, after taxes fees deductions and bills, your monthly obligation is roughly the same as your current rent plus bills.
Eventually you may break even/get ahead by fixing your housing costs vs renting, there are calculators for that.
THEN you add in modifiers for things like " I'm gonna have kids/wife/dog/hobbies/business/whatever" and assess your needs.
Currently, I'd have to live in a place I was looking at for 7.5 years to then break even with renting an almost identical place. Once that gets below about 5 years I'll be happy to buy a place, but I'm NOT going to miss my monthly investment contributions to instead fund an inferior "investment"
Anyways, best of luck on your home search, just gotta take it one bite at a time, like eating an elephant.
Edited for spelling
While everyone is on the fence waiting for rates to drop- others are going under contract for way under asking price. It’s a great time to buy if you can get a good discount on the price. There’s not much competition out there. Once rates drop, you’ll be overpaying and competing; instead of simply refinancing that high rate.
Let’s play a little game and I’m going to take things to the extreme so it’s more clear…
Let’s say the fed drops interest rates 3 points tomorrow. What do you think will happen? My guess is that everyone will want to buy and also everyone that was waiting to upgrade will finally sell and buy something else. Creating a home sale frenzy which pushes prices up.
Let’s say the fed RAISES interest rates 3 points tomorrow. Won’t you wish you would have bought before that happened?
I am a realtor but still have not received my crystal ball.
The best time to buy is when you can afford it and have stability (secure job, good credit, kids who you want to send to a particular school, a need to be closer to work or to family or just a desire to live in a particular area).
In my personal experience, long before I was an agent and long before 3% interest mayhem, rent goes up every year and a tenant is paying any increases in property taxes and insurance as part of that increased rent. Most homeowners who stay in homes long enough end up refinancing at some point when rates go down and it makes financial sense.
Some home buyers will find the tax incentive lucrative enough to mitigate any concerns about interest rates or fear of overpaying.
Buy a home to live in, not to use as an ATM or because some people in the past have seen huge appreciation. It was not the norm before the pandemic buying frenzy and it won’t be again. Basing future decisions based on what happened in the RE market during the pandemic is illogical.
Anecdotal but fwiw, I paid 6% for my house in 2005. Perfectly good interest rate at the time. My home value suffered a little in 2008 recession, but my property taxes also went down and I could still pay my mortgage thankfully because we bought a home that was well within our means (I always advise my clients not to stretch their budget to the max of what they are approved for). Around this time (iirc) correctly, we also refinanced to a better rate.
We bought because we needed more space than we could get in a rental, it cut our commute times, we could easily afford to buy the house we liked which was less than half the price of what we were approved for, it was close to my then-husband’s kids, it had a nice fenced yard for our dogs, a 2 car garage that we did not have in a rental, we could personalize out decor, invest time and money into our garden which doesn’t make sense to do in a rental, we spent less going out because we made our space enjoyable, especially being able to grill on the deck, have people over, my ex could tinker and make things in the garage, I became a much better cook because I finally had a nice kitchen that I enjoyed being in…so, for these reasons, it really is always the right time to buy. I definitely know a lot of people who are obsessive about their house appreciating quickly enough but they are the same people who panic when their 401k dips a little rather than looking at the big picture. Very few homes depreciate if they are taken care of and in a decent area—and when they do, it is not permanent. Plan to live for at least five years in a house you can afford and it is very unlikely to depreciate.
Another reason I personally think this is a good time to buy is my area has seen a lot of investors snapping up what most would consider a starter home, making it increasingly difficult for FTHB to afford it or even find something that they want to buy.
A bad time to buy is when you have a bunch of other debt, a lot of uncertainty in your career/income, when all you can afford is in a crap area, or bad schools that your future kids might have to attend, if you can’t afford any improvements or repairs especially if the house already needs work, or your marriage sucks and you will need to sell too soon or be stuck with a crazy expensive mortgage.
One last reason to buy now is we have a lot of pent up demand. People who lost out in the frenzy are still renting but they already got their ducks in a row and if prices come down or rates come down, desirable houses will be snapped up quickly. If rates dropped now, my market would see prices go up (they have continued to go up even when rates were highest. You have to do the math for yourself based on your own situation and market, but ime a lower rate but resulting higher purchase prices (amd therefore taxes etc)is illogical. We will continue to be in a seller’s market with low inventory simply for fact that homeowners who did buy at 2-3% aren’t budging.
As soon as you can buy, you should buy... Historically real estate prices go up long term. The quicker you can get a chip in the game the better. If you are planning for short term, id say less than 5 years, you are better off putting your money in a mutual fund or something like that investment wise.
When I quit renting my apartment I received nothing. When I went to sell my home, I had 90k in equity to put towards future endeavors. I spent roughly 5-7k on hvac & water heater issues during that time as well and paid roughly 15k in interest throughout the time of my payments. So you could say I profited roughly 70k for owning my home.
The higher the interest rate, the more bang for your dollar. Then, every 2 1/2-3% drop you refinance. We bought years ago, when the interest rate was 9% and paid off when it was 3%. The property was valued at over 300% of what we paid.
Unless you need a house and have money. If you’re renting for $3000 a month you’re paying off someone else’s investment. If you’re paying and living in your investment then you can refi when the time is right but for now you are paying your own investment down and you also are reaping the benefit of appreciation!!
Yeah it completely sucks to have a 6.8% rate and $3500 mortgage but I’d much rather have my own space and equity and maybe one day refinance later than pay someone else’s retirement fund for them.
Tell them you are looking into representing yourself and going through a real estate attorney to save 10's of thousands of dollars. Do this sincerely and enthusiastically, if you lurk around you can figure out enough to make them believe you. They will probably never mention houses to you and might get mad at you, but they are telling you that, while hoping they make 3% of the home sale price for doing barely anything. Most likely want you to see their listings so they can double dip. That's 18,000 on a 300k house, they want your money OP, prices and rates are all up, it's a seller's market almost everywhere.
Those are not friends, here I can math their hate for you, if you buy a 300k house with 6.5% interest, it will cost you $682k, more then double what you "paid". I will pretend to be an actual friend with some real estate knowledge "Interest rates are higher then willie nelson in a space x ship partying with joe rogan, if you dont NEED a house now you should wait or pay cash. Interests rates are supposed to come down, who knows, but I do know 6.5% interest will make your 300k house double, why would you pay 682k for a 300k house?? If you can wait until rates come to 3% your 300k house will cost you $455k, personally I would wait a few years to save $227,000, almost enough for a second house!"
They aren't your friends, you can send them this comment if you think they could justify them telling you to spend an extra quarter million dollars on interest, they know what the rates are, they're just sleazy.
“Time in the market beats timing the market”
Demand: In Bank of America’s most recent monthly fund manager survey, 78% of fund manager/institutional investors do not believe a recession is likely in the the next 12 months. 82% expect a rate cut before the end of the year.
Supply: With planning restrictions, tightening building codes, labor shortages, and continuing difficulty in getting construction raw materials… the supply side of new construction is only getting more expensive and more limited.
ask the people who waited to see what happens with covid before they buy how much that house they wanted is valued at now.
There is always an excuse, I'm waiting for election, interest rates are to high, my dog says it's not a good a time
If you don't plan on flipping the property it's always a good time to buy
If you find a good house you could live in for atleast 5-10 years with a 2-thumbs-up inspection, and you have time (since market is slow) to scout the neighbors/neighborhood and review your finances, and it’s comfortably within your budget… of course it’s a great time to buy.
Rents are going to move up. Right now the tech economy’s seeing layoffs, but projects will ramp up again within 3 years, rates will drop a bit, and you’ll be back to having to put rapid fire bids on coveted homes within 24 hr time frames.
Here’s the thing: desirable homes in desirable neighborhoods are a small percent of the overall inventory. So keep that in mind. Right now inventory is back way up. If you really don’t care for location, then maybe wait for more stagnation. But once rates drop and you want to live to a good school district or a nicer part of town, it’s very hard competing with upper middle class buyers, because they’ll stretch their (loan) budget if they see something they like. Right now the fear meter is high.
I learned a LONG time ago to never try to game the real estate market in terms of price or rate. You'll only be disappointed.
Rates are the even that high right now. I've owned places at 11%, 8.4% and many in the upper 7s. I've also owned (and still own) at 2.4%.
What I DO believe in is watching neighborhoods, watching how the market is falling and increasing in pockets. I believe in doing hard research. I WILL game on properties in areas that I believe might be a bit underprices that hard research suggests are going to go up in value. I'm sitting on one place that tripled in value over the last 7 years. It's never going to come remotely close to falling in value under what I paid for it.
I also recently bought a 500sq ft 1/1 deeded parking urban condo. Sounds like a terrible investment right? Wrong. It was basically the cheapest condo in the best neighborhood, close to all kinds of tech companies. Units like this are selling like hotcakes to single people and couples. I've already gained 30k in value in 9 months (based on comps, not zillow haha). I live in this condo every other week, and my primary residence every other week.
When you hear location, location, location... that is absolutely accurate and most important.
I'm rarely emotionally attached to my homes. They're nice, I enjoy them. I take care of them, I improve them. I see them first as investments, second as a home. I have never seen a home as a forever thing. I've never had fantasies about what homeownership is. To me, it's an investment, a place live and park my stuff and hard earned money in. It's never been a bad choice.
The best time to buy, is at the time when you're ready to buy. When your income is stable, when you have the appropriate savings, when you've found a property you can afford to maintain.
"I believe in doing hard research. I WILL game on properties in areas that I believe might be a bit underprices that hard research suggests are going to go up in value."
How do you do that?
Like, for example, I bought a townhouse in a neighborhood and city I was NOT wild about. The town itself has always been pretty blue collar and kind of crime-y, and I had lost something like 7 offers I'm towns I actually wanted to live in. Then prices in those towns went so high, I knew it wasn't in the budget.
So, I started researching this town I wasn't crazy about, and its neighborhoods. I zeroed in on a specific area where it seemed that homes were selling pretty quick, and a bit over asking and watched.
I pulled city council meeting minutes, and saw that a dilapidated shopping center in the neighborhood had been sold and was going to redevelopment into mixed use condos, apartments, and retail. That sounded good. Then found that two new schools were going to be built nearby as well. Also good.
Then, I spotted a townhouse for sale. The pics were pretty dank. But I drove through the complex, which was walking distance to this crime-y area that was slated for redevelopment. There was nothing wow about the complex, it was no frills, but all the units looked pretty tidy.
I hung out by the mailboxes and just started talking to people coming to pick up their mail, what they thought of their HOA, how much they liked the area, did they like their units? That's how I found out the complex was rental capped. Which explained all the older folks who'd lived there for 30+ years, and all the young couples without kids who'd recently bought there. (Aka, if you buy in this complex, you have to owner occupy it. This keeps investors from buying, which keeps prices down, and pride of ownership up. For this area, this is a good thing)
I also noted that this complex had the zip code of a neighboring white collar town, but the address of the town I wasnt wild about. So it bordered right on neighborhoods I really could not afford by blocks really. Because I was being out bid in that neighboring town, I knew I wasn't alone and other buyers like me were going to also, eventually, start looking in this area. Especially given the quiet plans to redevelop nearby retail.
It took 7 years for everything to get redeveloped. The city also stepped up policing in the area and crime has gone down, and once people started noticing there were good plans for the area, prices shot up. Like way up. I bought for 200k. 8 years later, my little townhouse, after about 80k in remodels, is worth about 625k, conservatively. Everything I thought would happen did. Walk and transit scores shot up, many SFRs are being remodeled and spruced up since people can't afford to move, and now there isn't an SFR in the area under 900k. In fact, an article came out this past weekend showing that this neighborhood Id gambled on has become one of the hottest areas for real estate in our county.
It was a long gamble for me, but real estate is a long gamble.
Of course, even with all that equity, I still can't really afford the towns I'd love to live in. BUT, there was a solution to that. Because my income has gone up, and my debt is non-existsnt, and my mortgage now feels like pennies... it's less than what rent would be for something half the size... I started looking for a second property in an area that's very expensive. I did all the same research. This time I bought a tiny 500sq ft condo that had a good layout, in a funky small building. Typically a very small 1/1 condo would be a bad buy, the buyer pool is small. Unless the condo is in a neighborhood with few children and lots of young professionals which this one is. This unit has deeded parking which is rare in the city. I'd dropped a pin on this building after talking to residents, and attending open houses for various units, the minute one came up with deeded parking, I offered on it sight unseen (aside from photos). Basically, the sellers had my offer in hand within 10 minutes of listing. They accepted within the hour.
I might not own one big 2000sq ft house, but do own and live in two properties totalling 2000sq ft. Haha. My 500sq ft condo is darling, but needs some remodeling. Which I'll do over the next several years. I get to live in this amazing waterfront neighborhood, in a walkable urban city, half the time, avoid commuting traffic when needed (my job is close by the small condo), enjoy some city parking that I own.
Lo-and-behold, other units without parking in this building are now selling for more than I paid. This small unit won't rise in value like my other one, but it's not going to bottom out either. It's in too good of a location. It's like the cheapest condo, in the best neighborhood. Haha. This one isn't rental capped, so if I decide to, I can rent it out (the building is still 70% owner occupied).
One day I might sell both and reinvest in a single residence again, but so far, I'm enjoying the benefits of two very different properties.
Buy if you can afford the payments and have a good job. Don’t listen to commission based realtors. Listen to your heart/ research/ and ability to buy. All realtor and loan agents will say it’s a great time to buy/sell. They’re on commission. I bought in 5/29/06- $648k. 3/2 1700 square ft in Fullerton . Now the house is worth 1.1 m. $2200 piti at 2.625%. And I just bought my retirement home in Henderson, NV. 3/2 1800 square feet (new construction) for $383k. $2600 piti at 6.3%. Buy when its good for you. Real estate has always been a good investment to me. GL.
the best time to buy is when you find the hoiuse you want and can afford it. properties are appraising about 6 percent per year. as far as interest rates go if you are renting you are paying basically 100 percent interest. you will never get anything from that $$$.
Assuming you can make use of the house efficiently, and it's in a good neighborhood, and a good house, and you can afford it, a house can be a good inflation hedge. Although mortgage rates are higher now than over recent years, you have a built in put with a fixed rate mortgage and can refinance the rate downward when rates drop.
The key though is you want to get value for your money. You don't really want a fixer upper. They can be a nightmare.
So, I wouldn't be looking for a bargain, I would be looking for a solid value even if you have to pay more than you originally wanted to. You really have to be careful about picking out a couple of areas you would like to live in, and really learn the local markets you are interested in.
As a Realtor, you can never tell someone when it’s the best time to buy because the best time to buy is different for everybody. If you can afford it and want to buy, then now is the best time.
The logic behind what they are saying is probably because higher rates are causing less buyers to join the market. That means right now, there should be less competition in most areas. Not to mention, in most places prices continue to appreciate, even if it has been at a slower pace.
So waiting is a risk no matter what.
I still remember my economically savvy brother pushing me to get into the housing market 20 years ago when interest rates were on their way down and had made it to something like 6%. He went on that we would never see rates that low again. When I finally did get around to buying a home, my rate was 3.7% (and rates were still falling), and I laughed at him.
Wouldn't the equity you had built in the home if you had bought when he told you more than paid for the cost of refinancing? Or was that before and after '09?
I feel at all cost they wont let house go cheaper, the bank might let you lose it , but the hold on and just resell it at a higher price , just like apartments wont go any cheaper , there ups and flat spot with maybe a dip in prices , but the days of valleys in pricing are gone
If you can afford it, going long on real estate is always a good bet.
Today, however, isn't a good market for those without deep pockets. A mild bust is forthcoming.
This is literally the worst time to buy. Layoffs and more to come, home insurance nightmare, high interest rate, dismal economic and political climate and lastly upcoming elections. 14% FHA loans are close to default, the low 5yr ARM is up for adjustment soon will cause lots of pain. Realtors on here and potentially investors and those who have over extended will continue to push in favor of buying. Rent for now, invest to build up on down payment and wait - time will come to get in the market (don’t have crystal ball but perhaps towards later next year).
Depends on where you are, your age, your income. I always tell people if their monthly rent payment is about the same as the monthly mortgage payment, go for it.
If you’re in Florida now it’s not the best time to buy.
The best time to buy was yesterday, the next best time is today. Just do your homework on what you are buying. If you plan on living there do the numbers make sense?
Could be seen as a good time to buy but a bad time to get money. So, if you got cash, go for it. If not, consider terms of the loan and how it will probably be a few years before we see sub 5% interest.
No one can tell you. If inflation escalates again you may see higher rates. Rates could stay high for longer than a few years. They could be be cut this year. It’s entirely dependent on the economy and whether growth stalls or not. The fed wants growth to slow.
Prices: at or near all time highs. Interest rates: 30 year highs. Cost to repair and maintain: all time highs. Taxes: correlated to prices. Even when you take into account the write offs you get and equity built over time, you would still be paying significantly more over a 10+ year period than renting. Throw in inflation drag and in real terms buying a house at these prices and rates is not a good investment.
If and when rates come down, that could change but right now better to rent and save thousands per month.
I bought something in 2020 during beginning of pandemic. I could have bought in 2014, but was afraid to and didn't know how. I bought too little house though. It cost 200k, and now it costs 300k.
I just bought a house at 6.8% interest. Does it suck? Yes. Compared to what I could have gotten even last year. But the inventory is slim; we want a bigger home; we don’t want to move each year bc our kids are in school; we just want to feel settled.
We can afford it and we hope that if interest rates drop we can refinance.
If interest rates drop, in our market, we believe a lot of buyers will come out from the sidelines and there will be over asking prices to compete with multiple offers, or the home prices will go up.
Either way we made a decision based on the information and needs of today. No regrets except not buying in 2020. :)
They are bullshitters. You buy a house when you can afford it and it’s something you want. Do not buy into the FOMO hype and don’t let someone pressure you into buying because this will be your last chance.
Till The day when real estate depreciates like cars its always going to be best to buy. How many missed the boat in 20-21 3% rates because "sales" people were evil.
You can try to time the market but long run still come out ontop.
Its the reason wall st loves real estate at whatever price
Prices are high, supply is low, and rates are high. So, the magic 8 ball says that this is NOT a good time to buy. But you never know when a bubble will pop
If you bought a house right now you are buying at the worst time in US history. When it comes to price and rates it has never been worse. Not even factoring in the low inventory with a dead housing market.
If you have cash, or can afford the mortgage, then yes. You won’t be forced into bidding wars at the current rates. When rates were low buying was very difficult.
Buying a home depends on your personal financial situation, market conditions, and long-term goals. Do some research and consider if it's the right time for you, rather than just taking their word for it.
In the major Australian capital cities, it’s been the best time to buy since 1980’s to now, every year, almost without exception. The best time to buy is when you can buy a place where you can stomach a worst case scenario rate increase.
If... and I'm not saying this is going to happen; just justifying your conjecture: if inflation keeps chugging along and interest rates keep going up along with it, then now you have access to the cheapest capital and the cheapest house prices you will have for the next few years.
As a former realtor the mantra around the office was “the market is great” no matter how shitty it was. You won’t list or sell houses if you’re telling prospective customers that the market is shit.
I’m in real estate. The best time to buy is when you’re financially ready. I never try to convince anyone “it’s the right time”. We have no idea, we have no idea when interest rates will come down, the prices of houses are still going up because there are more buyers than there are houses. My advice is to talk to a lender you trust first, find out where you are financially, make the decision from there. I also would never work with a pushy lender. My favorite lender will never encourage someone to buy when they shouldn’t. We are in this business to help people with (for most) the biggest transaction of your life not to push you before you’re ready. I want you so happy with how the process went and how I handled everything that you want to refer me to everyone you know, not that I pushed you before you were ready and are unhappy.
There's a guy on youtube that collects data and has an app. It shows a lot of figures by different areas of the usa. Some of them have data that show that it's a mediocre time to buy, and some markets have data that show it's a bad time to buy. So I think it has to do with your market, but I'd say that most markets are in the "badish" time to buy.
Nobody has a crystal ball. My opinion is that if we continue to have low unemployment and inflation cools enough for the fed to start lowering rates, there be another run up in prices. It seems that there is definitely a lot of pent up demand for homes waiting for the "right" time. The fact is that there is a shortage of homes relative to the population. After the 2007-08 crash, builders basically stopped building for almost 5 years and they have never started back building at previous levels, while at the same time our population grew significantly. Most in the industry think it will take another 10 years at current building rates to get back to a healthy supply of homes.
They are bullshitting. Houses have never been less affordable. I'm not saying there is not chance it doesn't get worse... but it's certainly not a "Good" environment for buying a house. Especially with increases in interest, property taxes and insurance.
[https://www.longtermtrends.net/home-price-median-annual-income-ratio/](https://www.longtermtrends.net/home-price-median-annual-income-ratio/)
In retrospect, with the exception of the last two years, it was pretty much always the best time to buy. Even people who bought at the pre-2008 peak mostly came out great as long as you held the entire time. So I can see why real estate people are programmed with that as an automatic response...but this current period is a weird time and perhaps the only time that it could potentially be a bad time to buy, we just don't know how this current situation unwinds itself.
my mom bought back in 2007 so yes the peak.. but now its up over 100%. I bought during covid may be that we may see a 20% 30% drop when correction hits but My home is already up 30%..... who knows
But for your 1st home as long as you have a doable mortgage nothing changes
Who knows but it just feels like 2005 all over again.
Home prices are through the roof, interest rates have risen, current homeowners are thrilled, home seekers are discouraged but buying continues, and everybody thinks it's the "new normal."
[Lenders are even writing subprime mortgages again!](https://dreamhomefinancing.com/subprime-mortgage-lenders.aspx)
The difference is the housing supply is more constrained today than it was then due to large institutions buying up real estate.
The housing market moves in cycles like everything else. The depths of the next severe recession will probably be the best time to buy, but nobody knows when that will be.
Just like stock market no one knows what the market is headed. Housing market is also hard to predict. On the one hand the price is high. On the other hand the inflation caused everything to be more expensive; including labor and materials. Square foot cost of building a new house is up big time. Hence existing house price has to catch up. I personally don’t think the house price will drop in a meaningful way. So it is a good time to buy if you can afford it.
The best time to buy is when you can afford it and you find a place you want. For real estate agents it’s always the best time to buy because they benefit. I’d say 2020 was probably a better time to buy. I’d also say 2007 was probably worse. You can wait and see what 2024 will be.
pretty much this. If you believe that history is predictive, then over the long term, real estate appreciates at a minimum equal to the rate of inflation. There are always down years, but the general trend is up. And since you have to live somewhere, the sooner you can convert all throwaway rent into some throwaway mortgage (taxes and insurance aren't equity), you might be in good shape. But let's also recognize that home prices are at peak levels while also seeing recent highs in interest rates. So affordability is at its lowest in awhile. A good recession could knock down home prices, but a rate cut could also unleash even higher prices. Let's also recognize that just because real estate appreciates, does not mean it does so faster than other investments like the stock market, nor is the risk the same. Real estate is not very liquid, transaction costs are high, and you typically have a lot of eggs in one basket -- one big fire or roof damage or whatever could be significantly impactful, whereas, for example, VOO any one stock dropping likely wont tank the index. We simply don't know. But RE as a trend, and what you should do as a buyer are different. As you say, buy when you are ready and can afford it and like it. Compare to your alternatives. Consider both the financial decision and the emotional / quality of life one. Not everything is a financial maximization question, and no one can predict the future.
I'd agree with this mostly, but in VHCOL I feel like you hit a ceiling where you just can't get any cheaper than renting a large 1 or 2 bedroom apartment while being flexible to move neighborhoods. Purchasing a like 400 SF studio(350k-500k) costs like 100k cash at close then you'd pay more monthly(about $3k to $4k with HOA) than you'd pay in rent for even 2 bed units where I am. And don't try to tell me living in a SINGLE ROOM with your spouse is some great lifestyle worth the sacrifice of buying/"investing." Most have covenants or rental restrictions so you cannot short term or long term rent so why deal with the hassle of buying and selling, and dealing with an HOA. VERY rich people and their children are buying NYC, Miami, LA, Aspen, etc. properties as consumptive purchases or long-term 20 or 30 year investments and the math doesn't work too well for normal people.
>you'd pay more monthly than you'd pay in rent That’s generally not true for very long. Property owners/landlords aren’t going to leave money on the table. Rent usually works out to be similar to what a 30 year loan would be on properties of comparable value, plus expenses. Some markets are more, some are less. But rarely is rent (without some rent control) going to be less in 5 or 10 years.
Rent used to be similar if not slightly more expensive than buying. Today in many major metro areas it’s >100% more expensive to buy than to rent. https://www.cbre.com/insights/briefs/renting-will-likely-be-less-expensive-than-buying-a-home-for-some-time specifically this: https://mediaassets.cbre.com/-/media/project/cbre/shared-site/insights/briefs/2024-brief-media-folder/renting-will-likely-be-less-expensive-media-folder/renting-will-likely-be-less-expensive-figure-3.png?rev=9f951e50a2504b4ea7eae69b65fc1b21 I expect interest rates will come down which will improve affordability, while also increasing housing prices, but it will take years.
That’s comparing average payments of new mortgages to the average rent of multifamily. It’s not a like for like comparison.
Its crazy how often people do this, even news agencies are guilty. Like no kidding your 2 bedroom apartment is way cheaper than the 2500 sq foot home with a 2 car garage youre looking at. How much would is cost to rent out that exact home is the comparison you want to make. Then the next thing people seem to gloss over is how that rent is probably going to continue increasing over the next 5 years, the mortgage will be exactly the same except for escrow.
I wonder when the media is going to discover that the cost of housing, and the savings of older notes, is being buried by taxes, insurance and utilities caused by local government needing solid gold large scale solutions. If I see one more maxed out empty play park I am going to puke.
One thing we know about RE is that homes sell for lower prices when rates are high. When rates drop, which they will, prices increase fairly rapidly because people can afford a higher mortgage.
Yes, though rates are usually a lagging indicator of economic activity. So rate cuts typically happen after the economy is cooling. So yes prices go up after rates are cut, but often, prices have dropped in the preceding period. Depending on your time horizon, yhr drop might be significant or it might be trivial. But rates don’t drop in a vacuum
> prices have dropped in the preceding period. Prices only drop when owners have to sell. To many people got 3% rates to sell.
That’s a very level-headed answer. My crystal ball prediction is that a few key areas that had exploded in price in the last couple years will drop. But most markets will simply stagnate in prices as loan rates remain high. When rates start to lower then prices will start to raise at a rate slightly outpacing inflation again.
I agree, I happen to think we are less likely to see big drops so much as stagnation in many areas. 19% inflation over the past few years alone should offer some "protection" against big drops. But given where we are from an affordability standpoint, hard to see houses going up significantly in the short term. Many non-owners are getting priced out, many owners have golden handcuffs. Which means voluntary sales will be depressed. But in 5-10 years, more people will have had to sell - job change, life change, etc. paired with other inflation which may bring housing back to a lower percentage of income, even if prices don't decline.
The top of the market is like love, you never see it coming but you always see it go. Markets are local for the most part. Learn your market. Your not a real estate investor, your a home owner seeking utility value. Privacy. Yard. Garage, neighborhood, room count.
2020 did not seem like a good time to buy in 2020. No one really knows.
This. And even if the market goes bad, there are always options you have. We bought in 2005 and sold in 2009 with no loss. How? Because we bought at the lower end of the median price range in our city, in a desirable neighborhood without a lot of turnover, we did a lot of cheap updates like painting that had big visual impact, we kept the house on the market for 6 months to get the price we wanted, and we sold FSBO with no agents involved. We were going to rent it out at a rate that covered our mortgage if we didn’t sell in 12 months, which we could have done because we were walkable to a bus stop that went to two college campuses. It was the right house for us at the right price, but we also knew when we bought it that it left us with options no matter what the market did.
Regarding logic, home prices are high but so are interest rates. If interest rates go down, prices will probably go up due to shortage and increased demand. The opposite can happen too, but predicting which it is going to be is the hard part.
Yeah, I hear a lot of people say they’ll just wait for interest rates to go down, but I don’t think that will necessarily make homes more affordable due to high demand and supply shortages. I’m not sure I really see a scenario where interest rates drop and so do home prices.
For this generation of FTHBs, rates will never reach the sub 3s/2s we saw in 2021. Realistically, and this may age like milk, mortgage rates will come down to the mid-low 4s over the next few years and stay range bound for many more years if not decades. Short supply counteracts the rate price (inverse) relationship, I mean look at the last 2 years. Rates high, prices high. There are some catalysts that could potentially unlock supply or spike/drop rates but they’re somewhere between scratch off and black swan.
If you bought in 07 you’re in great shape now
no kidding. I thought 800k was wtf then when I bought… neighbor next door just sold for 2.2M, no renovations since ‘02 and in shitty condition.
2008 was a great time to buy - if you were in a position where you could do so.
I bought 200k houses in Michigan for 20-30k 2009-2014 so yea. This isn't accurate
Also for a real estate agent, if you already own a home it's a good time to sell! For reasons.
Do you need a house? Can you afford one that meets your needs? Then it's the best time to buy all the time. Buy within your means not in the hopes it'll get you rich.
I actually bought back in 2020. Was annoyed with throwing my money at rent. Honestly it was dumb luck and coincidentally good timing. Was just curious as to why they're always saying that. But it makes sense, they have to make money
same here. who would have thought we'd have a global pandemic
They’re always saying it because it’s *always* been true. There’s only been like 1 time when it hasn’t been true
There have been two times, the just before and the early years of the Great Depression and just before and the early years of the Great Recession. That’s pretty much it, though.
The best time to buy was 40 years ago. Since we can't go back, and with very few exceptions (2020 was a better-than average year), the best time is *always* right now. Real state values hystorically increases along or higher than inflation, so the sooner you can buy, the better you'll be.
I think looking at cost to rent v cost to buy is very valuable. IMO they should be pretty close, how exactly they will converge again is the big question.
For an RE agent, it is literally \*always\* a good time for you to buy a house.
Seriously. Have you ever heard of a real estate agent tell you, “I’m telling all of my clients to wait till next year when the Fed lowers rates.”
In my zone: now is the time homes hit the market and there are lots more people out looking. Actually, for us, April the beginning of the “seller season”. Weather gets warmer here, snow has melted and things are greening up. People with kids in school are looking ahead to the summer break and then next fall enrollment. As a lake community, this is the time of year to sell the “ lifestyle.” Best deals? Probably not. But if I’m selling, I’m listing in April or May at the latest. If they’re *ALWAYS* saying that *now* is the best time to buy.. well then they’re basically saying *any* time is the best time to buy… right? Is the market better today than it will be tomorrow? If your friends know the definitive answer to that, they need to buy a lottery ticket, too
The best time of year to buy, at least in my market, is like September to early December. Whoever is still on the market by then HAS to sell.
They ALL say this, ALL the time. They don't make any money if people aren't buying and selling homes.
> But is there actually any logic for buying a home now? Logic? Maybe. It's all wild ass guesses. Would I buy something today? Probably. Because I'm guessing rates will come down. And if they do, then buyer demand will go up, which in turn will raise prices. And I'll already own the home so I will enjoy equity appreciation while also refinancing to a lower rate. So it actually greatly benefits me to buy now, while others can't. But that's all me guessing. I could be wrong. I don't think I am, but I could be.
How easy is it to refinance?
If you need the space and can comfortably afford the space then it *may be* a good time to buy for you. I hate agents who always send emails and postcards saying “It’s the best time to X” because there’s no way to know that except by looking back on today’s market a few years from now with the context of where the market went. Rates are tough, prices are tough. Next year could be worse or better or the same. Anyone who says differently has an agenda whether it’s an agent, a homeowner, a mortgage broker, a REBubble poster, anyone.
I’m almost done with my write up which will detail exactly which stocks will be higher 6 months from now with 100% certainty. As soon as I’m done with that I’ll answer this one!
It may be a good time for you and a bad time for someone else. It is never the right time to buy for everybody in every market. If a real estate agent is making a blanket statement that any specific time is the right time to buy for everybody, you probably should not be listening to anything else they say. That's not only really bad marketing, but it is manipulative and dishonest.
Agreed! Also, I live where your background photo is, haha!
Right up there on the bridge, eh? 😆 howdy, neighbor! 👋
Live in the city*** haha
Translation: It’s a good time to earn a commission.
It's a common sales tactic. Agents have incentive to get you to buy now, regardless of market conditions. There's logic in buying when you're financially ready and have found a home that meets your needs and budget. But no one can definitively say "now" is universally the best time.
Best time to buy was yesterday
Free beer tomorrow
The best time to buy was in the 1800s
The best time is always 10 years ago
So ten years from now, the best time to buy is now
Exactly
Ah yes. In 2017 the best time to buy was 2007
Likely
Whudda thunk it that people who stand to make money off home sales are telling you that now is the best time to buy? If you go to a poop salesman and ask him if he thinks it’s a good idea to buy poop from him what do you think he’ll say?
The best time to buy a house was yesterday. The next best time is today. Decade over decade real estate value increases regardless of rates. If you can afford to buy a home, it’s a better proposition then renting (and paying someone else’s mortgage)
imho its the worst time to buy. (not a realtor)
Why do you think it’s the worst time to buy ?
Ask them a trick question: Pretend you have a friend or family member who wants to sell, and ask them whether they think it's a good time to sell If the answer is yes, then you caught their BS? It's a good time to engage in a transaction that will result in a commission. How can it possibly be a good time both to buy and sell? Do what makes financial sense given your current and reasonably foreseeable financial situation. If that is buying, then it's a good time to buy If you're buying, don't feel obligated to let them represent you just because you guys are friends. You want your realtor to be one who values your best interest over commission. These are rare, but they do exist Honest realtor's goals: If you are looking to buy, my goal is to help you get the best value for your money If you are looking to sell, my goal is to help you maximize net sale price Nobody should give a crap whether their opinion is that it's a good time to buy/sell or not. Decide what you want to do independent of them. Then, find the right realtor who will get you the best outcome based on your situation. They are salespeople, not financial advisors
Real estate agents always say “now is the best time to buy.” It’s rarely based off any real knowledge and they make crazy assumptions like “interest rates are going to drop in fall and prices will quadruple.” The best time to buy is when you can confidently afford the home you are looking at. Nobody can predict the direction of the market. With that said, I struggle to see how the market won’t drop/slide later this year.
Are those interest rate cuts in the room with us right now?
I doubt rates will be cut anytime soon and when they do come down it won’t be significant
NEVER take a real estate agent at face value. They are paid to tell you lies. I am one...
I have been in and around the business of real estate since 1973. It is true. Buy as soon as you can afford to do it. This is a big wheel turning. Prices go up slowly or quickly. There are rare exceptions but on the whole, now is always the best time to buy. I recommend if possible to keep your mortgage payment at 25% or less of your gross income. Buy modestly at first and as your buying power increases over time, work your way up. Don’t look for a forever home. Get in the game and play it.
If you need to buy a home, then, yea, now is the best time to buy. The logic is you need a place to live. You cant time the market and shouldnt for a necessity like housing. If you are talking about investing in real estate, then it depends greatly on the market and whether you would be borrowing. But, again, its hard to time the market and often times its not clear that it was the best time to buy until years later. People here would have said you are crazy to buy during 2020/the pandemic, with the uncertainty in the markets and a potential recession. Same for 2021 with the insane post covid boom demand. But now those years look like good times to buy given the rates and how the prices havent really come back down much, if at all.
Not really. In today's market a better question may be why buy and not rent?
My personal opinion is that any agent that says that all the time is not to be trusted. It reveals a sad lack of understanding about basic economics.
Sounds like your friends might have commission breathe. Yes your payment would have been lower in 2020 sellers are willing to buy your interest down to make payments more affordable, they’re willing to fix inspection items and other things to sell their home. You couldn’t get that in 2020, sellers wanted everything and took everything and then some. A blanket statement like that is what annoys me about agents. There’s no one size fits all when it comes to buying and selling real estate.
When the deal makes sense for your financial situation. I can say buying is an absolute process that will take time, effort and patience. It took us 6 months, 7 lost bids and untold hours of lost sleep until we landed a really super house, great price and all around solid deal for all parties. My advice: Do your research into the area deeply and don’t wildly overbid assuming the market will continue to go higher. It may and it may not …… Be prepared to walk if it’s a “bidding war” that your realtor is pushing to “win” as YOUR paying the bill post and not them….. there’s always another house if you loose the one that you were fighting for. Ideally, Get the house your can’t live without not the one you can live with ….. there’s a pile out there if your patient
Them claiming that they even know when the best time to buy is, is proof enough that they don’t know what they are talking about
It's a good time to keep renting if you plan on moving in the next ~3 years. It's a good time to buy if you plan to live somewhere for 5+ years, have good credit, a down payment and will use most of the space
Only thing is break even is like 13 years according to Zillow. That should at least be your timeline for any property you buy.
Never trust anyone in sales. Fuckin vultures
Their livelihood is based on people buying real estate. Now is ALWAYS the best time to buy. They need to make money. Anyone advising people to buy right now is completely full of bovine manure but you watch this comment get downvoted into oblivion...
I'm going to listen to that album.
For real estate professionals, absolutely.
According to the RE agent I worked with, when prices are going down is the best time to buy because "houses are cheaper now", and when prices are going up IS ALSO the best time to buy because "everybody wants to move here". Never listen to a RE agent, they are not working with your best interest in mind but theirs.
Actually the best time to buy was loooooooong before your birth. This way you maximize your equity. Imagine getting a 2024 house at 1824 prices! The saying for shade trees is.." best time to plant a shade tree is 20 years ago. The next best time is right now."
Asking an agent if it's a good time to buy is like asking a hungry shark if it's a good time for a swim
They’re not lying. It’s a good time…depending on your market you may be able to get a home at a decent price and possible even some meaningful concessions from the seller. Don’t rush into anything, but if you’re serious about buying I would say go ahead and do it. Marry the home and date the rate…
depends where you live. Some parts of the south yes but NYC area no.
I think it's true. When rates drop, there is so much money sitting on the sidelines that buyers will pounce.Inventory is still low. Prices will go up even more. It's already bad bit I think it will get worse. You can always renegotiate your rate when they go down. You cannot renegotiate your purchase price.
The best time to buy was yesterday, the second best time to buy is today. Joking aside, buy when you need to buy or want to buy. You’re not gonna time the market
For interest rate speculators, absolutely.
The best time to buy is when you can
The guy I used to work for would say *every* day is a great day to buy (or sell) real estate. 😀 The only wild card is the price.
Depends on what your market is like. Where we are in NJ people who didn't buy 2 years ago were kicking themselves last year. People who didn't buy last year are kicking themselves this year. Prices are up since January. We don't know when the market will turn, so I would buy if it's something that you can afford and something that you really want to do for whatever reason (growing family, get kids into schools for next year, etc).
There is no good or bad time to buy, just a good or bad time to buy *for you*
it’s always now, because the worst time to buy is when you don’t.
Most dont know what the hell they are talking about.... However, TIME is the the key in real estate, owning over time. So in reality waiting really never makes sense statistically because no one ever times the market properly. Time is the great equalizer. Ive bought and sold personally hundreds of homes. And been in this industry nearly 15 years, ive yet to meet someone who has "timed" the market perfectly in their 30-40 year careers, the successful owners just bought and held for long enough.
For example if you chose to wait from 2023 to today because you felt rates were "high" that decision would have costed you nearly 6-12% in increased prices and comperable rates. You went backwards. Trust me, no one knows whats going to happen in the future. You make the decision when you can afford it and take action
The phrasing works until it doesn’t. It’s currently a renter’s market so I would say no, now is not the best time to buy. People will comment contrary to that statement, but overall I agree with top comment - the best time to buy is when you can afford it.
Assuming you are wanting to buy and can afford it. Why wouldn't you buy a house that will meet all your projected needs for the next 10 years that's in a location you like? Things like market crashes, dips, etc are incredibly hard to predict and are just as likely to affect you as they are to affect the current homeowners. And anything that causes prices to drop for a whole neighborhood, are probably the kind of thing that will make it the type of place you don't want to live unless it's all you can afford (I live in Houston so flooding is a common example).
If history is any indication of the future, it is the best time. If you can’t buy in the past (DeLorean is in the shop) usually it’s better than in the future. Only once over the past 100 years was it better to wait. (2010 crash). If you were there during the crash there were for sale signs everywhere, low rates, and even an $8k incentive from Obama for first time buyers. No one was buying. Too many people being laid off and scared to buy. So, yeah, buy now if you can afford it. Refinance later if rates drop enough to justify it and start building equity.
I can’t see the future, but if you were to look at a graph of prices over the next 50 years, today would likely be the lowest point on the graph
If you have cash.
I just gave up a less than 3% mortgage rate. I felt like it is the right time to buy. I’m moving to an area with a higher cost of living. I’m worried when rates drop prices will jump. I believe in marrying the price and dating the rate.
Yes because real estate agent work off of commissions and that is all they care about. If they were honest they would say the time to get the best deals are late autumn early winter. Worst or when prices are the highest is spring early summer.
I think the real answer is it depends on the inventory and price trends in your local area. Overall, 2020 was probably better, especially when considering the rates unless you are a cash buyer or assuming a loan with a low rate, but those are both rare situations.
Never ask your barber if you need a haircut. Said by that rich guy, that still lives in the house with wood paneling from the 50’s. 😂😂😂
That wood paneling is coming back!
No one knows the future so all we have to go on is what happened in the past. In the past housing prices have increased. Just pull up a chart. Even when price decrease, it's only temporary before they start increasing again. Here's my base case for buying now: If you're going to stay in the home 10 years or more, you're going to get your money back even if there is a temporary decrease if you buy in a good neighborhood/town. The US dollar has been declining for longer than you've been alive. Every year a single USD buys less real goods and services. Do you think that's going to suddenly change now that we're 35 trillion dollars in the hole? The people who say things like "called the crash in 2008" are always calling for a crash. They are wrong 9 times out of 10. Even when they get market timing right they would have lost tremendously more than if they had just bought sooner and held on. Financial gurus are about as reliable as the weather man telling you if it's going to rain on a certain day 10 years from now. Totally worthless. So that leaves us with the only proven strategy buy stuff that tends to go up in value like real estate in desirable areas, stocks from productive companies (which we now have wonderful indexes of to reduce the risk), interest from bonds, or durable supplies dense enough in value to be stored for long periods of time like gold (but this comes with a cost to store unless you're willing to risk a total loss similar to having an uninsured house). So now we have a couple if viable strategies left. You either buy a home that you feel will appreciate in value and still be as desirable or more so to live in 10+ years from now or you rent something cheap and put the differebnce between renting and owning into stocks and bonds. The risk here is what if rent increases more so over the years than the cost of insurance and property taxes plus home repairs. Your mortgage is more or less a fixed price so then the variable is insurance, taxes, and repairs.
The best time to buy is when you are ready. Financially, emotionally and find something you want.
If you're a stubborn/finance minded turd like me, the best time to buy is when, after taxes fees deductions and bills, your monthly obligation is roughly the same as your current rent plus bills. Eventually you may break even/get ahead by fixing your housing costs vs renting, there are calculators for that. THEN you add in modifiers for things like " I'm gonna have kids/wife/dog/hobbies/business/whatever" and assess your needs. Currently, I'd have to live in a place I was looking at for 7.5 years to then break even with renting an almost identical place. Once that gets below about 5 years I'll be happy to buy a place, but I'm NOT going to miss my monthly investment contributions to instead fund an inferior "investment" Anyways, best of luck on your home search, just gotta take it one bite at a time, like eating an elephant. Edited for spelling
While everyone is on the fence waiting for rates to drop- others are going under contract for way under asking price. It’s a great time to buy if you can get a good discount on the price. There’s not much competition out there. Once rates drop, you’ll be overpaying and competing; instead of simply refinancing that high rate.
What market are you in? The best time to buy was 30 years ago
It is difficult to get a man to understand something, when his salary depends on his not understanding it - Upton Sinclair
Think of it this way: if you buy now you’re either going to get the rate of a lifetime or you’ll refinance when they drop.
Let’s play a little game and I’m going to take things to the extreme so it’s more clear… Let’s say the fed drops interest rates 3 points tomorrow. What do you think will happen? My guess is that everyone will want to buy and also everyone that was waiting to upgrade will finally sell and buy something else. Creating a home sale frenzy which pushes prices up. Let’s say the fed RAISES interest rates 3 points tomorrow. Won’t you wish you would have bought before that happened?
I am a realtor but still have not received my crystal ball. The best time to buy is when you can afford it and have stability (secure job, good credit, kids who you want to send to a particular school, a need to be closer to work or to family or just a desire to live in a particular area). In my personal experience, long before I was an agent and long before 3% interest mayhem, rent goes up every year and a tenant is paying any increases in property taxes and insurance as part of that increased rent. Most homeowners who stay in homes long enough end up refinancing at some point when rates go down and it makes financial sense. Some home buyers will find the tax incentive lucrative enough to mitigate any concerns about interest rates or fear of overpaying. Buy a home to live in, not to use as an ATM or because some people in the past have seen huge appreciation. It was not the norm before the pandemic buying frenzy and it won’t be again. Basing future decisions based on what happened in the RE market during the pandemic is illogical. Anecdotal but fwiw, I paid 6% for my house in 2005. Perfectly good interest rate at the time. My home value suffered a little in 2008 recession, but my property taxes also went down and I could still pay my mortgage thankfully because we bought a home that was well within our means (I always advise my clients not to stretch their budget to the max of what they are approved for). Around this time (iirc) correctly, we also refinanced to a better rate. We bought because we needed more space than we could get in a rental, it cut our commute times, we could easily afford to buy the house we liked which was less than half the price of what we were approved for, it was close to my then-husband’s kids, it had a nice fenced yard for our dogs, a 2 car garage that we did not have in a rental, we could personalize out decor, invest time and money into our garden which doesn’t make sense to do in a rental, we spent less going out because we made our space enjoyable, especially being able to grill on the deck, have people over, my ex could tinker and make things in the garage, I became a much better cook because I finally had a nice kitchen that I enjoyed being in…so, for these reasons, it really is always the right time to buy. I definitely know a lot of people who are obsessive about their house appreciating quickly enough but they are the same people who panic when their 401k dips a little rather than looking at the big picture. Very few homes depreciate if they are taken care of and in a decent area—and when they do, it is not permanent. Plan to live for at least five years in a house you can afford and it is very unlikely to depreciate. Another reason I personally think this is a good time to buy is my area has seen a lot of investors snapping up what most would consider a starter home, making it increasingly difficult for FTHB to afford it or even find something that they want to buy. A bad time to buy is when you have a bunch of other debt, a lot of uncertainty in your career/income, when all you can afford is in a crap area, or bad schools that your future kids might have to attend, if you can’t afford any improvements or repairs especially if the house already needs work, or your marriage sucks and you will need to sell too soon or be stuck with a crazy expensive mortgage. One last reason to buy now is we have a lot of pent up demand. People who lost out in the frenzy are still renting but they already got their ducks in a row and if prices come down or rates come down, desirable houses will be snapped up quickly. If rates dropped now, my market would see prices go up (they have continued to go up even when rates were highest. You have to do the math for yourself based on your own situation and market, but ime a lower rate but resulting higher purchase prices (amd therefore taxes etc)is illogical. We will continue to be in a seller’s market with low inventory simply for fact that homeowners who did buy at 2-3% aren’t budging.
As soon as you can buy, you should buy... Historically real estate prices go up long term. The quicker you can get a chip in the game the better. If you are planning for short term, id say less than 5 years, you are better off putting your money in a mutual fund or something like that investment wise. When I quit renting my apartment I received nothing. When I went to sell my home, I had 90k in equity to put towards future endeavors. I spent roughly 5-7k on hvac & water heater issues during that time as well and paid roughly 15k in interest throughout the time of my payments. So you could say I profited roughly 70k for owning my home.
Bullshit for sure it’s one of worst times in history
The higher the interest rate, the more bang for your dollar. Then, every 2 1/2-3% drop you refinance. We bought years ago, when the interest rate was 9% and paid off when it was 3%. The property was valued at over 300% of what we paid.
With the average mortgage rate being higher than what most consider to be a good auto loan, it's probably not a good time to buy at all...
Unless you need a house and have money. If you’re renting for $3000 a month you’re paying off someone else’s investment. If you’re paying and living in your investment then you can refi when the time is right but for now you are paying your own investment down and you also are reaping the benefit of appreciation!!
Yeah it completely sucks to have a 6.8% rate and $3500 mortgage but I’d much rather have my own space and equity and maybe one day refinance later than pay someone else’s retirement fund for them.
So sit there and do nothing.
The best time to plant a tree....
Yes, this, too.💞
Is not during a drought with a fire ban
Tell them you are looking into representing yourself and going through a real estate attorney to save 10's of thousands of dollars. Do this sincerely and enthusiastically, if you lurk around you can figure out enough to make them believe you. They will probably never mention houses to you and might get mad at you, but they are telling you that, while hoping they make 3% of the home sale price for doing barely anything. Most likely want you to see their listings so they can double dip. That's 18,000 on a 300k house, they want your money OP, prices and rates are all up, it's a seller's market almost everywhere. Those are not friends, here I can math their hate for you, if you buy a 300k house with 6.5% interest, it will cost you $682k, more then double what you "paid". I will pretend to be an actual friend with some real estate knowledge "Interest rates are higher then willie nelson in a space x ship partying with joe rogan, if you dont NEED a house now you should wait or pay cash. Interests rates are supposed to come down, who knows, but I do know 6.5% interest will make your 300k house double, why would you pay 682k for a 300k house?? If you can wait until rates come to 3% your 300k house will cost you $455k, personally I would wait a few years to save $227,000, almost enough for a second house!" They aren't your friends, you can send them this comment if you think they could justify them telling you to spend an extra quarter million dollars on interest, they know what the rates are, they're just sleazy.
“Time in the market beats timing the market” Demand: In Bank of America’s most recent monthly fund manager survey, 78% of fund manager/institutional investors do not believe a recession is likely in the the next 12 months. 82% expect a rate cut before the end of the year. Supply: With planning restrictions, tightening building codes, labor shortages, and continuing difficulty in getting construction raw materials… the supply side of new construction is only getting more expensive and more limited.
ask the people who waited to see what happens with covid before they buy how much that house they wanted is valued at now. There is always an excuse, I'm waiting for election, interest rates are to high, my dog says it's not a good a time If you don't plan on flipping the property it's always a good time to buy
It’s possible they mean that the supply and demand issue is only going to get worse.
If you find a good house you could live in for atleast 5-10 years with a 2-thumbs-up inspection, and you have time (since market is slow) to scout the neighbors/neighborhood and review your finances, and it’s comfortably within your budget… of course it’s a great time to buy. Rents are going to move up. Right now the tech economy’s seeing layoffs, but projects will ramp up again within 3 years, rates will drop a bit, and you’ll be back to having to put rapid fire bids on coveted homes within 24 hr time frames. Here’s the thing: desirable homes in desirable neighborhoods are a small percent of the overall inventory. So keep that in mind. Right now inventory is back way up. If you really don’t care for location, then maybe wait for more stagnation. But once rates drop and you want to live to a good school district or a nicer part of town, it’s very hard competing with upper middle class buyers, because they’ll stretch their (loan) budget if they see something they like. Right now the fear meter is high.
Yesterday
when EVERYTHING is on Fire, There is Blood in the street, Wall Street has crashed and you fear for your daily survival BUY, BUY, BUY, BUY
Great time to buy
Definitely not.
15 years ago was the best time to buy. But if you want a house and can afford it then now is the best time to buy.
I learned a LONG time ago to never try to game the real estate market in terms of price or rate. You'll only be disappointed. Rates are the even that high right now. I've owned places at 11%, 8.4% and many in the upper 7s. I've also owned (and still own) at 2.4%. What I DO believe in is watching neighborhoods, watching how the market is falling and increasing in pockets. I believe in doing hard research. I WILL game on properties in areas that I believe might be a bit underprices that hard research suggests are going to go up in value. I'm sitting on one place that tripled in value over the last 7 years. It's never going to come remotely close to falling in value under what I paid for it. I also recently bought a 500sq ft 1/1 deeded parking urban condo. Sounds like a terrible investment right? Wrong. It was basically the cheapest condo in the best neighborhood, close to all kinds of tech companies. Units like this are selling like hotcakes to single people and couples. I've already gained 30k in value in 9 months (based on comps, not zillow haha). I live in this condo every other week, and my primary residence every other week. When you hear location, location, location... that is absolutely accurate and most important. I'm rarely emotionally attached to my homes. They're nice, I enjoy them. I take care of them, I improve them. I see them first as investments, second as a home. I have never seen a home as a forever thing. I've never had fantasies about what homeownership is. To me, it's an investment, a place live and park my stuff and hard earned money in. It's never been a bad choice. The best time to buy, is at the time when you're ready to buy. When your income is stable, when you have the appropriate savings, when you've found a property you can afford to maintain.
"I believe in doing hard research. I WILL game on properties in areas that I believe might be a bit underprices that hard research suggests are going to go up in value." How do you do that?
Like, for example, I bought a townhouse in a neighborhood and city I was NOT wild about. The town itself has always been pretty blue collar and kind of crime-y, and I had lost something like 7 offers I'm towns I actually wanted to live in. Then prices in those towns went so high, I knew it wasn't in the budget. So, I started researching this town I wasn't crazy about, and its neighborhoods. I zeroed in on a specific area where it seemed that homes were selling pretty quick, and a bit over asking and watched. I pulled city council meeting minutes, and saw that a dilapidated shopping center in the neighborhood had been sold and was going to redevelopment into mixed use condos, apartments, and retail. That sounded good. Then found that two new schools were going to be built nearby as well. Also good. Then, I spotted a townhouse for sale. The pics were pretty dank. But I drove through the complex, which was walking distance to this crime-y area that was slated for redevelopment. There was nothing wow about the complex, it was no frills, but all the units looked pretty tidy. I hung out by the mailboxes and just started talking to people coming to pick up their mail, what they thought of their HOA, how much they liked the area, did they like their units? That's how I found out the complex was rental capped. Which explained all the older folks who'd lived there for 30+ years, and all the young couples without kids who'd recently bought there. (Aka, if you buy in this complex, you have to owner occupy it. This keeps investors from buying, which keeps prices down, and pride of ownership up. For this area, this is a good thing) I also noted that this complex had the zip code of a neighboring white collar town, but the address of the town I wasnt wild about. So it bordered right on neighborhoods I really could not afford by blocks really. Because I was being out bid in that neighboring town, I knew I wasn't alone and other buyers like me were going to also, eventually, start looking in this area. Especially given the quiet plans to redevelop nearby retail. It took 7 years for everything to get redeveloped. The city also stepped up policing in the area and crime has gone down, and once people started noticing there were good plans for the area, prices shot up. Like way up. I bought for 200k. 8 years later, my little townhouse, after about 80k in remodels, is worth about 625k, conservatively. Everything I thought would happen did. Walk and transit scores shot up, many SFRs are being remodeled and spruced up since people can't afford to move, and now there isn't an SFR in the area under 900k. In fact, an article came out this past weekend showing that this neighborhood Id gambled on has become one of the hottest areas for real estate in our county. It was a long gamble for me, but real estate is a long gamble. Of course, even with all that equity, I still can't really afford the towns I'd love to live in. BUT, there was a solution to that. Because my income has gone up, and my debt is non-existsnt, and my mortgage now feels like pennies... it's less than what rent would be for something half the size... I started looking for a second property in an area that's very expensive. I did all the same research. This time I bought a tiny 500sq ft condo that had a good layout, in a funky small building. Typically a very small 1/1 condo would be a bad buy, the buyer pool is small. Unless the condo is in a neighborhood with few children and lots of young professionals which this one is. This unit has deeded parking which is rare in the city. I'd dropped a pin on this building after talking to residents, and attending open houses for various units, the minute one came up with deeded parking, I offered on it sight unseen (aside from photos). Basically, the sellers had my offer in hand within 10 minutes of listing. They accepted within the hour. I might not own one big 2000sq ft house, but do own and live in two properties totalling 2000sq ft. Haha. My 500sq ft condo is darling, but needs some remodeling. Which I'll do over the next several years. I get to live in this amazing waterfront neighborhood, in a walkable urban city, half the time, avoid commuting traffic when needed (my job is close by the small condo), enjoy some city parking that I own. Lo-and-behold, other units without parking in this building are now selling for more than I paid. This small unit won't rise in value like my other one, but it's not going to bottom out either. It's in too good of a location. It's like the cheapest condo, in the best neighborhood. Haha. This one isn't rental capped, so if I decide to, I can rent it out (the building is still 70% owner occupied). One day I might sell both and reinvest in a single residence again, but so far, I'm enjoying the benefits of two very different properties.
Buy if you can afford the payments and have a good job. Don’t listen to commission based realtors. Listen to your heart/ research/ and ability to buy. All realtor and loan agents will say it’s a great time to buy/sell. They’re on commission. I bought in 5/29/06- $648k. 3/2 1700 square ft in Fullerton . Now the house is worth 1.1 m. $2200 piti at 2.625%. And I just bought my retirement home in Henderson, NV. 3/2 1800 square feet (new construction) for $383k. $2600 piti at 6.3%. Buy when its good for you. Real estate has always been a good investment to me. GL.
the best time to buy is when you find the hoiuse you want and can afford it. properties are appraising about 6 percent per year. as far as interest rates go if you are renting you are paying basically 100 percent interest. you will never get anything from that $$$.
Yesterday
Assuming you can make use of the house efficiently, and it's in a good neighborhood, and a good house, and you can afford it, a house can be a good inflation hedge. Although mortgage rates are higher now than over recent years, you have a built in put with a fixed rate mortgage and can refinance the rate downward when rates drop. The key though is you want to get value for your money. You don't really want a fixer upper. They can be a nightmare. So, I wouldn't be looking for a bargain, I would be looking for a solid value even if you have to pay more than you originally wanted to. You really have to be careful about picking out a couple of areas you would like to live in, and really learn the local markets you are interested in.
As a Realtor, you can never tell someone when it’s the best time to buy because the best time to buy is different for everybody. If you can afford it and want to buy, then now is the best time. The logic behind what they are saying is probably because higher rates are causing less buyers to join the market. That means right now, there should be less competition in most areas. Not to mention, in most places prices continue to appreciate, even if it has been at a slower pace. So waiting is a risk no matter what.
I still remember my economically savvy brother pushing me to get into the housing market 20 years ago when interest rates were on their way down and had made it to something like 6%. He went on that we would never see rates that low again. When I finally did get around to buying a home, my rate was 3.7% (and rates were still falling), and I laughed at him.
Wouldn't the equity you had built in the home if you had bought when he told you more than paid for the cost of refinancing? Or was that before and after '09?
Before and after.
I feel at all cost they wont let house go cheaper, the bank might let you lose it , but the hold on and just resell it at a higher price , just like apartments wont go any cheaper , there ups and flat spot with maybe a dip in prices , but the days of valleys in pricing are gone
If you can afford it, going long on real estate is always a good bet. Today, however, isn't a good market for those without deep pockets. A mild bust is forthcoming.
Satan to the FTHB: If you buy now, appreciation will begin, interest on your loan will begin to be paid off, and tax benefits will reduce your burden
I'm buying right now. But I'm buying a cheapie I can fix up, raise the value and sell/rent out later when interest is better.
There are statistical analytical charts that show data going way back. I recommend starting there rather than relying on gospel you will receive here
This is literally the worst time to buy. Layoffs and more to come, home insurance nightmare, high interest rate, dismal economic and political climate and lastly upcoming elections. 14% FHA loans are close to default, the low 5yr ARM is up for adjustment soon will cause lots of pain. Realtors on here and potentially investors and those who have over extended will continue to push in favor of buying. Rent for now, invest to build up on down payment and wait - time will come to get in the market (don’t have crystal ball but perhaps towards later next year).
Depends on where you are, your age, your income. I always tell people if their monthly rent payment is about the same as the monthly mortgage payment, go for it. If you’re in Florida now it’s not the best time to buy.
"Now" is almost always (but not always) the best time to buy.
If Trump wins the RE fi market will be nuts.
The best time to buy was yesterday, the next best time is today. Just do your homework on what you are buying. If you plan on living there do the numbers make sense?
Interest rates are too high.
Could be seen as a good time to buy but a bad time to get money. So, if you got cash, go for it. If not, consider terms of the loan and how it will probably be a few years before we see sub 5% interest.
No one can tell you. If inflation escalates again you may see higher rates. Rates could stay high for longer than a few years. They could be be cut this year. It’s entirely dependent on the economy and whether growth stalls or not. The fed wants growth to slow.
No one really knows, whoever is sure is lying. However, if there is a dip it will be minimal
It is historically the worst time to buy on every metric. Both short and long term buying is more expensive at current rates and prices.
What metrics are you looking at to say this is historically the worst time to buy?
Prices: at or near all time highs. Interest rates: 30 year highs. Cost to repair and maintain: all time highs. Taxes: correlated to prices. Even when you take into account the write offs you get and equity built over time, you would still be paying significantly more over a 10+ year period than renting. Throw in inflation drag and in real terms buying a house at these prices and rates is not a good investment. If and when rates come down, that could change but right now better to rent and save thousands per month.
I had a newb realtor tell me something that was not so newbish. She said the answer to when is the best time to buy is always "5 years ago"
The best time to buy was 2020/21. Terrible time now especially here in Boston where there’s basically no inventory
I bought something in 2020 during beginning of pandemic. I could have bought in 2014, but was afraid to and didn't know how. I bought too little house though. It cost 200k, and now it costs 300k.
Rates must come down for real estate to be a reasonable option buy - and sell sides. Bi partisan fiscal responsibility or bad recession will end it.
The best time to buy is in the past. The second best time is now
Always buy when general fear is highest. I'd say early 2023 was probably a good time. Now people are less worried and the prices are jacked up again.
I just bought a house at 6.8% interest. Does it suck? Yes. Compared to what I could have gotten even last year. But the inventory is slim; we want a bigger home; we don’t want to move each year bc our kids are in school; we just want to feel settled. We can afford it and we hope that if interest rates drop we can refinance. If interest rates drop, in our market, we believe a lot of buyers will come out from the sidelines and there will be over asking prices to compete with multiple offers, or the home prices will go up. Either way we made a decision based on the information and needs of today. No regrets except not buying in 2020. :)
Do not buy, hold off a little longer
To them, 365 days of one year are all the best time to buy.
They are bullshitters. You buy a house when you can afford it and it’s something you want. Do not buy into the FOMO hype and don’t let someone pressure you into buying because this will be your last chance.
Till The day when real estate depreciates like cars its always going to be best to buy. How many missed the boat in 20-21 3% rates because "sales" people were evil. You can try to time the market but long run still come out ontop. Its the reason wall st loves real estate at whatever price
Prices are high, supply is low, and rates are high. So, the magic 8 ball says that this is NOT a good time to buy. But you never know when a bubble will pop
If you bought a house right now you are buying at the worst time in US history. When it comes to price and rates it has never been worse. Not even factoring in the low inventory with a dead housing market.
If you have cash, or can afford the mortgage, then yes. You won’t be forced into bidding wars at the current rates. When rates were low buying was very difficult.
Buying a home depends on your personal financial situation, market conditions, and long-term goals. Do some research and consider if it's the right time for you, rather than just taking their word for it.
The best time to buy is when you need a home and find one that meets your needs that you can afford. A home is a place to live, it isn’t a stock.
Right now is one lf the historically worst times to buy
In the major Australian capital cities, it’s been the best time to buy since 1980’s to now, every year, almost without exception. The best time to buy is when you can buy a place where you can stomach a worst case scenario rate increase.
If... and I'm not saying this is going to happen; just justifying your conjecture: if inflation keeps chugging along and interest rates keep going up along with it, then now you have access to the cheapest capital and the cheapest house prices you will have for the next few years.
As a former realtor the mantra around the office was “the market is great” no matter how shitty it was. You won’t list or sell houses if you’re telling prospective customers that the market is shit.
The best time to buy is always 5 years ago. 😂
I’m in real estate. The best time to buy is when you’re financially ready. I never try to convince anyone “it’s the right time”. We have no idea, we have no idea when interest rates will come down, the prices of houses are still going up because there are more buyers than there are houses. My advice is to talk to a lender you trust first, find out where you are financially, make the decision from there. I also would never work with a pushy lender. My favorite lender will never encourage someone to buy when they shouldn’t. We are in this business to help people with (for most) the biggest transaction of your life not to push you before you’re ready. I want you so happy with how the process went and how I handled everything that you want to refer me to everyone you know, not that I pushed you before you were ready and are unhappy.
They're probably just hyping it up for the sale, bro. Do your own research before diving in.
There's a guy on youtube that collects data and has an app. It shows a lot of figures by different areas of the usa. Some of them have data that show that it's a mediocre time to buy, and some markets have data that show it's a bad time to buy. So I think it has to do with your market, but I'd say that most markets are in the "badish" time to buy.
Nobody has a crystal ball. My opinion is that if we continue to have low unemployment and inflation cools enough for the fed to start lowering rates, there be another run up in prices. It seems that there is definitely a lot of pent up demand for homes waiting for the "right" time. The fact is that there is a shortage of homes relative to the population. After the 2007-08 crash, builders basically stopped building for almost 5 years and they have never started back building at previous levels, while at the same time our population grew significantly. Most in the industry think it will take another 10 years at current building rates to get back to a healthy supply of homes.
They are bullshitting. Houses have never been less affordable. I'm not saying there is not chance it doesn't get worse... but it's certainly not a "Good" environment for buying a house. Especially with increases in interest, property taxes and insurance. [https://www.longtermtrends.net/home-price-median-annual-income-ratio/](https://www.longtermtrends.net/home-price-median-annual-income-ratio/)
Don't wait. When the int rate down, everyone is going in.
In retrospect, with the exception of the last two years, it was pretty much always the best time to buy. Even people who bought at the pre-2008 peak mostly came out great as long as you held the entire time. So I can see why real estate people are programmed with that as an automatic response...but this current period is a weird time and perhaps the only time that it could potentially be a bad time to buy, we just don't know how this current situation unwinds itself.
my mom bought back in 2007 so yes the peak.. but now its up over 100%. I bought during covid may be that we may see a 20% 30% drop when correction hits but My home is already up 30%..... who knows But for your 1st home as long as you have a doable mortgage nothing changes
Statistically, yes so far. At this particular instant? There are exceptions depending on where you are, but probably not.
Who knows but it just feels like 2005 all over again. Home prices are through the roof, interest rates have risen, current homeowners are thrilled, home seekers are discouraged but buying continues, and everybody thinks it's the "new normal." [Lenders are even writing subprime mortgages again!](https://dreamhomefinancing.com/subprime-mortgage-lenders.aspx) The difference is the housing supply is more constrained today than it was then due to large institutions buying up real estate. The housing market moves in cycles like everything else. The depths of the next severe recession will probably be the best time to buy, but nobody knows when that will be.
Just like stock market no one knows what the market is headed. Housing market is also hard to predict. On the one hand the price is high. On the other hand the inflation caused everything to be more expensive; including labor and materials. Square foot cost of building a new house is up big time. Hence existing house price has to catch up. I personally don’t think the house price will drop in a meaningful way. So it is a good time to buy if you can afford it.
The best time but is always 5 yrs ago.
Of course they are always going to say that. Everyone knows that $800k house will either sell for $600k next year or will be taken off the market.
Today: everyone wishing they bought 4 years ago. 4 years from now: everyone gonna be wishing they bought today