How to decide if you should try to time the market for a cheaper price.
Has the market cooled, and should you wait until prices go down to buy a house? There are multiple sides to every debate, but the bottom line is, yes, the market is shifting, but demand remains very high. The decision on whether you should buy now depends on how much you’re willing to risk and how buying a home would influence you and your family’s financial situation.
No one can say for sure what the future holds, but an important question to ask is, are you willing to take the risk of hoping that your area will be one of the few where prices fall? This makes it important to remember that many factors go into deciding prices. Things like interest rates, the overall state of the economy, the season of the year, and many other factors as well. So let’s take a look at this and unpack this and look at what three experts are telling us on whether or not they advise that this is a good time to buy a home.
“Many are convinced that buying when it’s right for you and your family is the best choice.”
Some industry experts say the fluctuation in prices depends on the needs and goals of the particular area. The J.P. Morgan Private Bank 2022 analysis of 116 metropolitan areas predicts housing prices to go in three general directions over the next couple of years. Some areas are predicted to drop 20% to 30%, some 10% to 15%, and some not at all. So it’s really important to understand what’s going on in your local market and work with the local expert. They can help you plan your strategy around what you need to do for your family in your investments.
Others say that trying to time the market to buy at the lowest possible point is often a fool’s game. You never know when the peak is going to end, and you don’t want to have any regrets. The market changes often and quickly, so many are convinced that buying when it’s right for you and your family is the best choice. Also, it’s really important to know that whatever the existence of the market is, you can always get a great deal when you work with a professional and know what we’re looking for.
The bottom line is whether or not it’s the right time to buy a home depends more on your finances and housing circumstances than it does on macroeconomic factors such as interest rates and price levels. Rising rates have taken many buyers out of the market, and the decline in values has resulted in limited for-sale inventory. However, there’s still an undeniable national housing shortage, and demand remains very strong. Bidding wars are cooling off, and buyers now have significantly more leverage with sellers than they did a year ago. Now more than ever, because the market has shifted, it’s important to have an agent in your corner to advise you on options and the best course of action.
If you’re considering buying a home, we love to hear from you. Please call or email our team of real estate specialists, and we will help you build a home-buying strategy. Happy holidays, and talk to you soon.
