Buy Now or Wait? Which is right for you in this crazy market?
by Paul Vattiat

This is a question that I get 10 times a week. Buyers are struggling with inventory levels and competition, making it seem as though it’s a bad time to be in the market. Couple that with rising prices and rising interest rates, and folks are questioning if they should wait. Here’s what we are seeing:

Prices have appreciated on average of 19.6% over 2021, over 26% since the pandemic began, and forecasters are predicting appreciation again this year. There’s a saying in real estate that the best day to buy was yesterday, and the second-best day to buy is today.

Rates have been at historic lows for over a decade, but like all markets they are subject to corrections and are trending upward for the foreseeable future. Depending on the loan amount, a 1% increase in rate could impact your payment several hundred dollars per month.

Here are some thoughts: The reality is that most people will not be able to improve their situation fast enough to outpace the market. If you continue to rent, you will not be earning equity, and prices and rates may continue to increase while you are on the sidelines.

In most cases, one would be better served to purchase something near term, even if it’s not their “forever home” to participate in the expected continued appreciation. You can always upgrade in near future, and the equity you earn will increase your down payment on the next one.

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