Thinking about buying a house in 2024 might sound a bit overwhelming, but guess what? It doesn’t have to be! Armed with the right know-how and a bit of prep, you can breeze through the home-buying process like a pro.
The real estate market
In 2020 and 2021, the real estate scene was like a wild race with buyers outbidding each other. Interest rates were low, and everyone, from investors to homeowners, saw opportunities to make bank. Fast forward, interest rates shot up, inventory went down, and the market got a bit rocky. Now, experts think there are still some adjustments to be made.
With mortgage rates taking a dip, you might be in a dilemma of to buy now or wait? Snagging your dream home early on could be a smart move to beat the crowds before rates potentially drop even more. But holding off might mean a wider array of choices later on as the supply beefs up, along with a chance for friendlier mortgage terms.
Pros and cons of buying a home now
Here’s the scoop from the pros when buying a house in 2024. If you make your move now, you could dodge the crowds and potentially save some cash down the road, keeping the risks at bay. Sure, interest rates are doing a little dance right now, but taking action beats waiting for what’s next. Once those rates dip, expect the competition to turn up a notch, making the home-buying game a bit trickier.
Now, experts usually say not to bank on refinancing later. But hey, if you can swing it, it might be a sweet bonus for your wallet. As Colin Lee, managing director at New Gables Capital, puts it, if you find your dream pad and the monthly tab sits pretty with today’s rates, why hold back?
Sure, there’s the temptation to dream of better deals in the future. But knowing what you’re getting now might just be the peace of mind you need. Especially if you’re ditching rent for homeownership, locking in a fixed-rate mortgage beats the unpredictability of rent hikes and landlord surprises, according to Lee.
And let’s not forget the feels – owning a place can be a serious mood booster! “While you can’t put a price on this, some people are tired of renting and will feel happier owning,” says Lee.
But, like any story, there’s a flip side. Cody Horvat, licensed real estate broker at The Scott Group, spills the tea on the current downside – a shortage of available homes in the market. High rates are giving some owners major FOMO about selling, limiting your options in terms of what you can snag.
Lee drops a truth bomb too – interest rates are expected to dip, so what you buy now might be a tad less flashy than what you could get in the future.
Pros and cons of delaying a home purchase
Hold off or dive in? Lee suggests waiting might bring more choices and a potential bargain as markets settle. Keeping an eye on interest rates and home prices could be the golden ticket.
But beware – no crystal ball here. Lee points out the gamble of potential rent hikes and the unpredictability of where rates and prices will swing if you wait.
Yet, the waiting game has its risks too. Horvat warns of a frenzy if rates drop, with prices spiking. But if rates climb, homes might get even pricier.
Then there’s the finance scoop. If you’re eying a heftier down payment, waiting could be the savvy move. Jo-Ann M. Marzullo, real estate attorney at Ligris + Associates, advises a solid 20% down payment makes dealing with higher interest rates less risky. But if your down payment is on the lean side, maybe hold off until rates play nice.
Moving is a Life Decision
Whether to dive into homeownership now or hang tight has its own set of perks and quirks. But the consensus among experts is pretty clear – go for that home sweet home when it feels right for you, aligns with your life goals, and fits your budget.
If you’ve got the savings and a comfy income to dance with a mortgage, locking in a price now could be your golden ticket to all the joys of owning your slice of heaven. Plus, with rates potentially dropping, the real estate party might get a bit crowded.
Now, on the flip side, playing the waiting game has its own sweet spots. Save up a bit more, trim down those mortgage payments, and revel in a sea of housing options. And lower mortgage rates might just be the cherry on top of your future home-sundae.
Whether it’s now or later, it’s all about finding the sweet spot that fits your homey dreams and pocket-friendly plans. Moving is a ‘life’ decision, often tied to major life events like starting a family, tying the knot, or embracing retirement near the grandkids. Sure, interest rates play a part, but they’re just one piece of the puzzle – not always the most crucial one. It’s all about finding your perfect timing!