Is the Market Good For Buying a Home Right Now?

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After two years of being stuck indoors due to COVID-19, many people are sick of apartment dwelling.  Although there’s far less maintenance and work required of you in apartments or home, there’s also barely any freedom of space or sound.

If you’re curious about buying a home, and you’re not sure if it’s the right time: here’s what you need to know before you take the next step.

Unfortunately, Housing Prices Are Soaring

If you’re asking yourself, ‘Should I rent or buy a house,’ you may think you’ve found your answer when you see how much houses are selling for right now.  In California, home prices went up by 8% in the last year, making it far too expensive for some home buying hopefuls.  If you’re on a tight budget and you’re trying to make your way into homeownership, it might be a good idea to wait a little longer.

There’s Scarcity, Which Means Prices Won’t Drop

Although prices are rising: there’s nowhere for them to deflate to.  There aren’t enough properties on the market right now, which means there’s no reason for housing to drop in value.  If another recession hits, or hundreds of thousands of homes suddenly become available, there may be a shift in this, but the likelihood of that happening within the next couple of years isn’t very high.  This means that if you buy a home now, within the next ten to twenty years, you’re going to see a huge increase in its value.

Mortgage Rates Are Still Favorable

Mortgage rates are at a low that hasn’t been seen in the last decade.  This low means that more people can afford homes because they’re paying less on top of the house’s value.  Although it doesn’t stop the homes themselves from being expensive, people can forgive these high prices because they know that they’re paying for the house itself.

The Cost Of Constructing Your Own Is Peaking

Construction materials and labor are at an intense high right now.  There was a construction boom at the beginning of 2020, and the supply hasn’t been able to catch up yet.  This means that all construction supplies are far more expensive than before, and the cost of hiring contractors and other professionals is also at an all-time high.  Unfortunately, this means it’s unlikely most homeowners will build their own houses. So this is another nudge towards buying one instead.

Moving To Buy Is Becoming A Trend

Many who realize they can’t afford to buy a home locally, yet are working remotely and aren’t tethered to a zip code, are moving out of state to buy homes instead.  This means you can purchase homes in far less expensive areas, where properties of similar size and age are selling for a quarter of the price they would sell for in states like California. Just ensure that if you decide to do this, you choose your city carefully and look for one that has everything you need instead of just seeking out the lowest prices possible.

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By Sikander Zaman

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