For those who have been shopping for a home recently, you’ve likely confronted more than a few challenges along the way.
High mortgage interest rates and rising home prices cut into affordability, pushing many would-be buyers to the sidelines. Secondly, a lack of housing inventory is only making matters worse.
Due to these conditions, some buyers have decided to pause their home purchasing plans on hold, at least temporarily. But is that such a good idea?
You can find out more from Erik Martin’s article at The Mortgage Reports here…
Temporarily stopping your home buying search might seem like a reasonable decision in certain situations, such as a volatile real estate market or personal financial uncertainty.
However, there are several compelling reasons why hitting the pause button on your home buying journey might not be the best move.
The real estate market is dynamic and ever-changing. Pausing your search could mean missing out on potential opportunities.
Market conditions can shift quickly, and a property that fits your criteria perfectly may become available during your hiatus.
In today’s market, for example, home prices are continuing to rise due to lower supply and higher demand. So, if buyers choose to wait, it’s a guarantee that they will pay more for a home in the future.
By staying active in your search, you can capitalize on favorable market conditions and secure a property that aligns with your needs and preferences.
Moreover, real estate is a long-term investment that tends to appreciate over time. This is especially true if borrowers are looking to keep the property for an extended period of time, versus flipping it quickly.
By delaying a purchase, would-be buyers could potentially miss out on the appreciation of property values in their desired area.
This could limit their ability to build equity and wealth through homeownership. Over the years, the property they had their eye on might become out of reach due to escalating prices.
Yes, interest rates are at much higher levels than they were 2+ years ago, but most experts agree that waiting for rates to come down before making a purchase is a risky strategy. Timing the market is always a very difficult task.
When rates do drop, many believe that there will be renewed interest and added demand in the real estate market…which means prices will rise at a faster pace than today.
By waiting, you might end up paying more for the same property when interest rates inevitably drop. Remember, borrowers can always refinance when rates go down, so ‘Marry the House but Date the Rate’!
While pausing your home buying search might seem like a cautious approach, it comes with potential drawbacks that could impact your financial well-being and future prospects.
The real estate market’s volatility, fluctuating interest rates, and the potential appreciation of property values all underscore the importance of staying active in your pursuit of homeownership.
By maintaining a proactive stance, you position yourself to make informed decisions that align with your goals and aspirations.