Are you waiting for prices to drop significantly before you buy a house? That is a common mentality nowadays, especially with interest rates as high as they are. No one can say exactly what will happen in the future, but many are hoping that values will crash so they can swoop in and buy properties for low prices. Should you wait to buy a house? Is it worth the risk?
Some industry experts say the fluctuation in prices depends on the needs and goals of the particular area. A J.P. Morgan 2022 analysis of 116 metropolitan areas predicts housing prices to go in three general directions over the next couple of years. Some areas are predicted to drop 20% to 30%, some 10% to 15%, and some not at all.
“What happens if you wait for a crash that never comes?”
Again, no one can say for sure what the future holds, but are you willing to take the risk of hoping that your area will be one of the few where prices fall? It is important to remember that many factors go into deciding prices, like interest rates, the state of the economy, the season of the year, etc. As a result, many experts believe it is not wise to wait for price decreases.
People on this side of the debate say that trying to time the market to buy at the lowest possible point is often a fool’s game. The market changes often and quickly, so many are convinced that buying when it’s right for you and your family is the best choice. You never know when the peak is going to end, and you don’t want to have any regrets. Hindsight is the only thing that’s 20/20.
The National Association of Home Builders’ chief economist, Robert Dietz, says, “I think you want to be strategic and patient—patience is different from waiting for a crash.” It is good to take the time to do your research and figure out your strategy, and buyers have more time to do that now as the market is shifting. However, that is different than waiting around for the market to crash to get the lowest price. If you do, you might miss your shot.
This is a lot of information to take in, so if you have any questions or want to talk with me about your specific situation, don’t hesitate to reach out. I would love to create a strategy with you that works best for you and your family. Call or email me anytime. I look forward to hearing from you.
