5 Reasons Why NOW Is a Great Time to Buy a House!

The market might not be what you think…

Let’s be real. Everyone has something to say about the current real estate market. News pundits, TikTok gurus, politicians, and that one uncle who talks like a Wall Street expert but still secretly prefers to have his mom pay for dinner—they’re all eager to tell you exactly what’s gonna happen next in the market.

But here’s the thing. None of those people are you.

At the end of the day, you are the one who needs to feel good about your financial investments and the mortgage you take on. You get to decide where your money goes, not Uncle Brian.

So…what’s reality? Has the real estate market turned a corner? Have you missed your shot to buy a house or invest in a rental property?

Honest answer: now is still a great time to buy a house. For real.

But we’re not just saying that. Here are the facts and logic that back this up:

1| Equity is better than rent.

Rental rates are increasing at the fastest pace in over 35 years. Most renters are seeing substantial increases in their monthly housing costs, and the reality is that those monthly payments go directly into their landlord’s pockets.

That means that if you continue to pay the ever-increasing rents on your current place, you’re saying goodbye to money you’ll never get back.

However, if you purchase a home, your monthly mortgage payments translate directly into equity that you’ll be able to leverage in the future.

You’re paying for housing no matter what, so why not pay yourself? Your future self will thank you.

2| Recessions don’t guarantee a drop in home prices.

There’s a popular myth that home prices fall during an economic recession. So, if pundits are suggesting that we’re currently heading towards a recession, it’s better to wait out the market and see what happens, right?

Not really.

Historically, recessions do not indicate a drop in home purchase prices. In fact, even during the worst housing bubble in US history, home purchase price increases only faltered temporarily. Check out how average home values changed in the years surrounding the Great Recession of 2008:

• 2006: $222,000
• 2008: $180,000
• 2010: $275,000
• 2020: $391,000

Today, despite the news of a recession on the horizon, we’ve seen home prices continue to rise. In the near term, there is no guarantee that prices will drop, but long term we can be certain that prices will go up.

Don’t miss out on an opportunity to buy at today’s market prices!

3| Refinancing is always an option. A lower purchase price isn’t.

But what about interest rates? Great question! It’s true, interest rates have increased and are very likely going to continue on an upward trajectory for a while, but don’t get discouraged!

While you may be signing up for a higher interest mortgage right now, you’ll have opportunities to refinance down the road as the Fed continues to adjust for market fluctuations. Purchase prices, by contrast, are more likely to steadily rise as time passes. So while you can eventually lower what you pay in interest, your principal is probably better now than it will ever be in the future.

4| Home values increase over time.

While nothing in life is certain, few long-term investments bear the guarantee of return on investment like real estate.

The reality is that property steadily increases in value across time, and as you pay off your mortgage, you’re growing your wealth. Month by month. Year by year.

You know that story of the couple down the street who bought their house in 1960 for $12,000 and recently sold it for $400,000? That could be you. The key is making your home investment early.

5| We’re in a competitive sweet spot.

After the past couple years, you probably know more than one story of a buyers bidding well over asking price and waiving contingencies just to get a claim on a house.

The good news is that with this recent market shift, we’re seeing an increase in the number of houses on the market and a decrease in necessity of over-asking-price offers. That means, as a buyer, you have a bit more breathing room to select the house of your dreams and purchase it close to list price.

That’s amazing!

So what should I do?

Use the market to your advantage. Buy a home while buyers are still in the driver’s seat.

The Lamb & Co. Real Estate team is here to help you navigate every step of the home buying journey, from initial questions to search strategy to closing.

Reach out today and let’s get started!