Despite some concerns about a bubble, it’s still a good time to buy a home.
77% of consumers and 44% of real estate agents believe that we’re in a housing bubble, so there’s skepticism that it’s not a great time to buy a home, but there’s still potential in our market. We believe that we’ll see a slight shift in the market within the next 12 to 24 months. We don’t expect any wild changes because people still have plenty of equity in their houses that they can use toward a down payment for another.
Even though we’re in a wacky real estate market right now, it’s still a good time to buy a house. Here’s a little math for you: Let’s say you pay $2,000 per month in rent for the next four years. That’s $96,000 that could have been paying down a mortgage, where you’d also get a tax deduction for your interest payments. If you bought a house instead, you would have made that much money unless home prices dropped by $100,000, which I just don’t see happening.
Remember that there’s a chance our market remains stable; many more people have excellent credit scores now than they did during the last bubble. Yes, we may see a bit of a bubble within the next year or two, but it still makes sense to purchase a house in this market and hedge against inflation. Buying now and riding the wave still beats throwing money away on rent, so if you find a house you love, by all means, go after it.
If you have any questions about buying a home or real estate in general, call or email us. We would love to help you.