4 Reasons Why Next Year You Should Buy a Home
Currently, homes are selling for over the asking price, with median sale prices spiking to 25% since last year. With the housing market so hot, people are waiting to buy. Here are four reasons why waiting until next year to buy a home is the smartest move to make.
1. You Have Time to Fix Your Finances
Even if you plan to offer below asking prices, you still need to get your finances in order before it is time to buy. During this time, you can work on building your stability by improving your credit score and working with advisors to qualify for homes.
2. Renting Is Doing You a Disservice
Just as prices for homes have increased, so have rental prices. When you decide to rent out your home, you will probably want to increase your rent, too. Why? Because as home prices increase, you will have to keep up with rising property taxes. Plus, in a hot real estate market, more people will be willing to pay higher rates.
However, for renters, this arrangement provides no leeway to save or work with financial advisors to prepare for purchasing a home. In the most populous metro areas like Austin and Chicago, rent prices are going up; since last year, it has risen by a shocking 8%.
You are not escaping the high prices of homeownership by renting, so planning to buy a home next year is an easy ticket out. As long as home prices go up, so will your rent. With most leases lasting a year, ditching your rental next year is a smart move.
3. You Have Time to Find the Right Realtor
If you are waiting to buy a new home until next year, you have time to set your goals and score the right realtor for your needs. Instead of flocking to the first available realtor you can find—which is what people are doing now because of the market—you have time to look at your options and choose who you think will be the best fit for your needs.
The right realtor will know how to find the best deals for properties within the neighborhoods you are interested in living in. Working with the right realtor is the difference between a positive and a negative home-buying experience. If you’re considering buying a house in the Bay Area, the agent you work with should be someone who is knowledgeable when it comes to the local housing market and the different restaurants, events, and museums in San Francisco.
4. Local Markets Break Rules
Just because prices are high right now does not mean that you are doomed for the foreseeable future. When prices are astronomical, homes can sell for under asking price due to local markets refusing to give in to national trends. By waiting a year, you give your local trends time to grow.
You also have time to research which local markets are asking for prices that work in your favor. Whether you want to buy a home in Austin or Denver, research the areas you are most interested in living in and compare market trends to find the most affordable options for your homeownership needs.
To see all the possibilities, be willing to venture out from your current area and look at nearby regions or states that have local market trends you can afford. Areas known for their affordability, like North Carolina and Detroit, are also areas worth checking out.
The Bottom Line
Waiting until next year to buy a house is a smart move. From escaping the astronomical costs of rent to getting yourself organized financially, you are putting yourself in a better position for purchasing a home by waiting a year.
We hope you enjoyed Simply Amazing Living's “4 Reasons Why Next Year You Should Buy a Home” post.