Should I Buy A House Now? Or Should I Wait For Prices To Go Down?
Owning a home has long been considered a cornerstone of the American Dream.
For many people, it’s still the best way to build long-term wealth.
But is now the right time to buy a home? Or should you wait for prices to go down? We get these questions a lot.
Half the time, it’s because someone is waiting for housing prices to drop.
Buying Now Is Good Move If You Can Afford it
While there are certainly a lot of things to consider when buying a home, our view (as many realtors say) is, “NOW is always a good time to buy.”
Still, it’s understandable if you’re on the fence about getting a home.
Your finances, the availability of homes in your area, issues in your personal life—these are some reasons that could keep you from taking the next step.
To help you decide if you should buy a home right now, let’s look at a few key areas.
PS: If you are ready to buy a home or are looking for homes with great value, check out our article Las Vegas Homes For Sale With Pools (2022).
Pool homes make a potentially great investment in Nevada.
Pros of Buying a Home Now
a. Tax benefits
As home ownership has always been a key part of the American Dream, there are a number of tax benefits in place that should help convince people that buying a home right now is a smart financial decision.
First. One of the biggest tax benefits of owning a home is that you can deduct the interest you pay on your mortgage from your taxable income, which can save you thousands of dollars each year.
Another major benefit of home ownership is the property tax deduction.
You can deduct the amount of property taxes you pay from your taxable income, which can save you even more money each year.
And finally, don’t forget about your capital gains exclusion.
Owning a home gives you a feeling of stability and permanence that is unmatched by any other type of investment.
When the housing market is unstable, renting becomes a more risky prospect than buying. When you own a home, you’re not at the mercy of landlords who may raise your rent or sell the property out from under you.
Essentially, buying a home gives you a place to call your own. It’s a place you can rely on.
c. Equity Buildup
Building equity is the process of increasing the value of your home by making improvements and benefiting from rising prices in the market.
The most common way to do this is by adding new rooms, bathrooms, a kitchen, or a garage, or revamping the house in other ways.
You can also increase your home’s equity by refinancing and taking cash out to pay for improvements.
If you have an existing mortgage, you can increase your home’s equity by increasing your mortgage payments.
If you’re on the fence about whether or not to buy a home, here’s yet another reason to pull the trigger: investing.
Recent studies have shown that buying a home is one of the best investments you can make.
In fact, in many cases, it beats out stocks and other investment options. There are a few reasons for this.
First, as we mentioned above, when you buy a home, you’re beginning your equity investment.
That means that as your home increases in value over time, so does your investment. And unlike stocks or other investments, you can use your home as collateral for a loan if you need extra cash.
Second, as you reduce your total amount owed on your mortgage, the value of your equity increases.
Finally, home prices have historically always been on the rise, and they are predicted to continue on that path.
This makes it a great time to buy a home as an investment, as you can expect to see a return on your investment over time.
e. Pride of Ownership
As you have seen above, there are many reasons to buy a home right now, but arguably one of the best is the pride of ownership.
When you own your own home, you have a place to call your own and to make memories that will last a lifetime.
Plus, you can paint the walls any color you want, build an extra room for your family and friends, or even construct a garden.
You can also make updates and renovations to make your home perfect for you and your family.
Homeownership is a tangible symbol of success, accomplishment, and stability.
And it creates a sense of community and belonging, while also increasing social capital and net worth.
In fact, homeownership is associated with increased happiness, better health outcomes, and even longer life spans.
All these benefits make it clear that owning a home is something worth exploring. If you’re still looking for a reason to buy now, look no further than The Real Estate Guy.
Possible Reasons To Wait To Buy a Home
It is often said that buying a home is one of the biggest financial decisions a person can make in their lifetime.
And while for many, it may be the right decision to make, sometimes waiting can also be the right move.
Perhaps you’re not yet stable job-wise and don’t want to take on the added financial responsibility until you know you’ll be able to keep up with your mortgage payments.
Or maybe you’re still paying off student loans and don’t want your housing costs to eat up too much of your monthly budget.
There are also plenty of expenses associated with buying and owning a home that may put you off from buying.
These include mortgage payments, property taxes, insurance, home repairs, and ongoing maintenance.
When deciding whether or not to buy a home, many people end up waiting for prices to go down to get a better deal.
However, this may not always be the best approach.
Housing prices may go down in the short term, but this does not mean they will stay that way forever.
In fact, home prices in the United States have been trending upward for years.
So, if you wait too long, you may miss out on an opportunity to buy a home at the price you already have available.
If price is a problem, you can talk to us, and we’ll go over details about how we can help you make your down payment.
The size of your home is an important consideration, and it’s one that may prompt you to avoid making a purchase.
It’s always possible that there may not be homes at the size you are looking for in the price range that is optimal for your needs.
Sure, you could buy a home that’s available now, but if it is not the right size for your needs, waiting could be the best option.
It’s important to remember that the market is constantly changing.
So, if you don’t find the perfect home now, there’s a good chance one will come along soon.
Keep an eye on the market and be patient – it’ll pay off in the long run!
And if you need our help finding your perfect dream home, we’re here.
Even if it seems like there aren’t too many options out there at times, our expert team can find amazing opportunities for you.
Your credit score is one thing banks consider closely when you’re applying for a mortgage.
A high credit score obviously means that you present less risk to banks, which could very well lead to a better rate on your loan and save you money in the long run.
If your credit score isn’t as high as you’d like it to be, don’t worry – there are ways to improve it.
Start by checking your credit report for errors and correcting them.
You can also start by paying off your old debts and increasing your credit limit.
Waiting to buy a home until your credit score is where you want it may be worth it – especially if you plan on taking out a mortgage.
Keep in mind that improving your credit score takes time, so don’t wait too long before you start taking steps to improve it!
If you are not sure of what to do, talk to a lender about your options and see where you stand.
e. Life Changes
When you’re ready to buy a home, there are many things you need to consider.
One of the most important is whether or not you’re actually ready for homeownership.
Buying a home is a huge commitment, and your needs may change in the future.
Here are a few reasons why you may want to wait before buying a home:
- You may want to wait until you’re married or have children, since those life changes can affect your need for space.
- Your job situation may change, and you may need to move to another location to work.
- You may want to upgrade or downgrade your lifestyle, and buying a home doesn’t always fit into those plans.
Think about your current situation and what you expect in the future before deciding whether or not homeownership is right for you.
Current Mortgage Rates
In the last few years, mortgage rates have hit historic lows, making now a great time to buy a home.
Locking in a low rate may be a compelling reason for you to commit. Many people are doing so.
While the market is not totally predictable, we do expect mortgage rates to rise significantly in 2023 and 2024, erasing the current opportunity.
Mortgage rates are already hovering around 5 to 6 percent, which is the highest they’ve been since the end of 2018.
Credit Requirements When Buying A Home
Credit requirements when buying a home have become more lenient in recent years, making it easier for buyers to qualify for mortgages.
In the past, you needed a credit score of 600 to 700 to get a loan.
Now, you might be able to qualify with a score as low as 580.
The requirements for making a down payment have also become more flexible.
In the past, you might have needed to make a down payment of 20% or more.
Now there are programs available that allow you to put down as little as 3.5%.
These changes have made it possible for many people to buy homes who would otherwise not be able to.
Given current trends, if you’re concerned about qualifying, we still encourage you to check into what’s available.
Considering the Big Factors, Are You Ready To Buy a Home?
After reading the above key points, you should understand that before buying a home in Las Vegas, it’s obviously very important to carefully consider your finances.
You should also know by now that there is no better time to buy a home than now!
So, if your answer to this question: “Do you have a stable job and the ability to cover monthly mortgage payments and other costs?” is yes, you are ready and good to go.
Ultimately, however, only you can answer this question and decide whether or not buying a home is doable.
But if you’re looking for some guidance, a real estate professional like Aaron Taylor can help you weigh your options and make an informed decision.
Call us today at (702) 310-6683 to get started.
The Real Estate Guy Can Help You Buy The Perfect Home
Whether you’re looking for a single-family home, multi-family home, townhome, or even a luxury villa, we can help you find the perfect home that fits your needs and budget.
Contact us today to start your journey to homeownership.