How to decide if you should try to time the market for a cheaper price.
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Should you wait until prices come down before purchasing a home? It's important to remember that there are many factors that go into determining the price of a home including interest rates, the local economy, the economy of the whole country, and even the season. A lot more goes into this than just trying to predict when the market will crash.
Industry experts are saying different things, but it's important to understand that prices have come down this year primarily because interest rates have gone up, so affordability hasn't gotten any better. In fact, it might be less affordable now than it was at the beginning of the year when prices were much higher. There is a balancing act of getting the best price, which will set you up for long-term equity, and the affordability of how much your monthly payment is going to be over the long term or over the short term if you're planning on refinancing.
Most experts predict that the market will continue to trend downward. Robert Dietz, the chief economist for the National Association of Homebuilders, says, “You want to be strategic and patient—patience is different from waiting for a crash.” Take your time, do research, and come up with a strategy that will make you successful. In this market, buyers have much more time to do that. However, that's different than waiting around for the market to crash and trying to time the absolute bottom. If you do that, you may just end up missing the chance. As always, all these things come down to personal factors, the local market, and your goals.
If you'd like to reach out and talk about a personalized plan, contact me by phone or email. I’d love to be your real estate resource.