Is Now The Best Time To Buy A Home? Industry Insights From Your Friends At Hixon
Don’t let rising home prices make you second guess when to buy your dream home! If you buy a home now, you could see significant gains down the road. Let’s look at some of the reasons the 2022 housing market is more stable than we think and consider how it benefits those purchasing their first home.
Reformed Lending And Borrowing Practices
The 2008 housing crash may be fourteen years past, but the lessons it taught us are very much in the present. No-doc loans were given to home buyers starting in 1999. This reckless practice meant lenders didn’t require proof of income or credit checks. As a result, borrowers were more likely to be upside down on mortgages, default on loans, and declare bankruptcy. The housing bubble had officially burst.
Since the crash, new regulations and strict lending standards have prevented mortgage loans from being given to risky borrowers. Today, borrowers provide income records, need excellent credit scores, and have to meet specific down payment criteria. Because of these reforms, foreclosures are at a record low, and homeowners are more secure.
Regardless, caution can work in your favor when you’re buying your first home. So make sure you’re financially prepared for the future and confident in your ability to make mortgage payments. The more realistic you are, the more market instability you can handle.
When To Buy A Home? Now May Be The Time
High home prices may create sticker shock and have you wondering if it would be better to wait and buy when the market cools down. But waiting might not be your best choice.
Home prices are expected to increase for at least the next few years, so you may want to buy a home you love now to lock in the rate and avoid even higher costs. By doing this, you can start building equity and enjoy significant price appreciation due to a large and highly motivated buying pool predicted to grow yearly.
The Benefits Of Buying A Home When Housing Stock Is Low
The housing stock is low, and it may take several years for homebuilders to catch up. This could lead to a few different things. First, homeowners could enjoy healthy price appreciation and growth in their net worth if new homes are steadily built to create balance in the market.
A less likely scenario is that inflation rises and housing stock doesn’t. This could suddenly cause home prices to drop and homeowners to be underwater on their mortgages. Fortunately, experts don’t predict this will happen.
Keep in mind that the alternative to buying a home now is continuing to pay rising rental prices. That’s money you’ll never see back. So, If you find a home you adore and intend on staying in long-term, snap it up! Purchasing now will allow you to weather market fluctuations and sell when the time is right. Just be sure to send us a postcard!
Buy A Home With Lenders You Can Trust
If you still have questions about when to buy a home, the Hixon team is here to help. Contact one of our experienced Loan Officers to discuss your options and the pros or cons of the current home buying landscape.
