Some people feel like they missed the opportunity of a lifetime to buy a house when rates were really low over the past couple of years. And with mortgage rates now in the 6-7% range, many buyers feel punished for waiting and regret not buying sooner.
Well, if you’ve been feeling that way, it may make you feel better to know that many people who did buy when rates were lower probably wish they could switch places with you.
According to this Yahoo article, three-quarters of the people who bought between 2021-2022 have regrets, such as:
- They didn’t have many houses to choose from
- Prices were constantly rising
- Paying over asking price
- There was extreme pressure to make quick decisions
- Not able to thoroughly research the house they were buying, or do inspections
So while lower mortgage rates may sound much more appealing, remember that they also played a large part in causing those (and other) issues for buyers.
4 Reasons Why Now May Be the Time for You to Buy
That said, now you not only have higher rates, but also inflation and a potential recession to factor into your decision whether or not to buy a house now. So no, it’s not a no-brainer, and you should be thinking before leaping into buying a house.
To that end, Apartment Therapy published an article citing the following four things as reasons for you to consider buying in the current market:
- Stability – Buying is a hedge against inflation, and stabilizes one of your largest monthly costs against rising rents and rates.
- You can refinance – Rates may be higher now, but you can capitalize on lower prices, more houses to choose from, and the ability to do your due diligence… and then refinance your mortgage when rates come down in the future.
- Ability to negotiate – Sellers haven’t had to bend on their price or terms over the past couple of years, but as the market shifts, you’re more likely to find a seller who is willing to negotiate.
- It could become harder to get a mortgage – Whether or not we’re currently in a recession is subject to debate. But when recessions happen, mortgage companies become more cautious and are likely to make it more difficult for you to get a mortgage.
It’s easy to feel like you missed out on the opportunity to buy when rates were at an all-time low. But it’s also easy to overlook the downsides buyers faced when they bought during that time period, and the benefits to buying now.
The market is rarely perfect in every way for a buyer (or seller for that matter), and you have to weigh the pros and cons for your own situation whenever you consider buying. Currently the pros to buying are that you can:
- Take advantage of house prices stabilizing, or even coming down
- Hedge against rising rates, rents, and inflation by buying a house
- Have more houses to choose from
- Take more time and ability to think about your options and decision
- Capitalize on more potential for negotiation
However, real estate market conditions vary from one area to another, and even one price range to another. So always consult your real estate agent for more in depth advice on whether now is a good time for you to capitalize on the current market conditions and buy in your preferred area and price range.