Homeownership is a major key to building generational wealth, but is now really the right time to buy a house?
If you haven’t noticed, prices are rising on everything—cars, gas, homes, and even groceries can cost you an arm and a leg. Because of inflation, you might be tempted to take the leap and go ahead and buy a house, but in a seller’s market like today’s, weighing all your options is best before making a risky move.
Buying in a hot market might seem appealing, but you’d be playing with fire. With fewer homes on the market that can meet demand, your likelihood of ending up in a bidding war is high, meaning the price of the house would be driven up even more.
In a seller’s market, it’s normal for bidders to bid more than the asking price automatically, so you’d have to do the same if you hope to luck out in a tough market.
Now the question still remains: to buy or not to buy?
One expert put it this way in a recent Bloomberg report, “If it’s not a lifestyle situation where you want more space or want to move to another geographical location, this might be a time to wait it out from buying.”
It all comes down to individual choice. Have you done the math to see if it’s better to rent right now than own? Have you considered your personal risk tolerance?
Take the time to understand the costs not to own a home versus the costs and risks of owning. In this case, there truly is no right or wrong answer. But you should know that if you decide to move forward with buying a house, it may be a more complicated process than it was just three years ago.
If you buy now, you may need to stay in the house for several years to see a return on your investment because rising prices mean there will be a correction later down the line. So what do you say?
Does buying seem like a better option to you right now, or will you stick to your guns and wait it out?