Is Now The Time To Buy A House?
A lot of people who were shopping for a house in 2021 or 2022 and could not get an offer accepted are now wondering: is it a good time to buy a house now?
Should I buy during an inflationary period in our economy?
Buying a house during an inflationary period is actually a hedge against inflation. You can lock in your monthly mortgage payment for the foreseeable future. That means as other prices rise, your mortgage payment will be consistent, because you received a fixed-rate loan for 30 years.
That means as prices go up for other products, the bulk of your housing costs are shielded from inflation. James Royale from Bankrate says “A fixed-rate mortgage allows you to maintain the biggest portion of your housing expense at the same payment” Property taxes may increase, but your monthly principal and interest will remain the same.
What is interesting about inflation is that even if the prices come down consistently, it doesn’t mean prices are falling, it just means prices are not rising as fast.
For homebuyers, a more modest pace of appreciation or even a stagnant period in appreciation can allow their incomes to grow. If you wait for inflation to come down to buy a home your income may help you to qualify to purchase a home. But there is no guarantee this will happen and rents will certainly continue to rise.
If you buy now you should hedge against the rising cost of housing. If you buy near the peak of the market, you may have to stay in the home for a little while longer if you want to come out ahead when you are ready to sell.
If you are thinking about buying or selling real estate or you have other questions about real estate please give me a call.
Mary Ann Edwards Re/Max College Park
Lic # 01103542