Rates are on the rise, and home prices are also rising.

Is it a good time to buy a house?

The answer depends on your plans, current situation and goals.

The question isn’t if its a good time to buy a house, the question is If it’s a good time for you to buy a house?

Forget what you’ve heard about interest rates.

It’s always nice to get a low interest rate but if you can afford to buy a home, it’s never a bad time to buy a home, especially if you plan on owning the home for long term, even with the higher interest rates.

In the long haul, real estate is a solid investment.

Don’t make decisions based on what everyone else is doing but rather do what you feel comfortable with.

To determine if it’s a good time for you to buy a house start asking yourself these questions:

• Is your home too small and you need more space for your family?
• Are you tired of paying down your landlords mortgage?
• Is your mortgage payment going to be less than or the same as renting?
• Are you ready to settle down in a specific location?

If you can find a home you like and you are financially ready, then it’s a perfect time to buy!

Here are some housing trends in 2022 to pay attention to:

• With home prices dramatically rising it makes sense to buy sooner rather than later if you can afford to do so
• Mortgage rates are rising. But even if they reach 5%, that’s still less than half the historic average.
• Home price gains may slow down in 2022, but it its unlikely that prices are going to fall. So it’s not worth waiting on lower home prices.

You can’t control the rates but you can try to get the best possible interest rate by making sure your credit is on point.

• Pay your bills on time
• Avoid too much debt
• Pay down your debt

Low rates are great, but even a 0% interest rate won’t make up for the potentially huge costs that come with buying when you’re not ready.

Risks of waiting to buy

Many buyers will get picky and say that they’ll wait for prices to drop. What if the prices don’t drop and they keep increasing instead?

You’ll eventually price yourself out of the market, meaning the 2bedroom you had your eye on is no longer a house you can afford because the prices keep increasing.

And..,what if the rates keep increasing? If the rates keep increasing you’ll no longer be able to qualify for the home you wanted to buy.

This is why it’s important to buy when you are ready financially instead of trying to time the market for lower prices and interest rates.

Renting versus Buying

As of Feb 2022 only 65.5% of people own a home, according to the Census.

Buying a home doesn’t make sense for some people. It’s a alot of responsibility. With renting you don’t have to pay property taxes or homeowners insurance, or maintain the home.

But one advantage that homeownership has is that your rent won’t keep going up every year. Your mortgage payment will be the same every month for 30 years as long as you get a fixed-rate mortgage.

Renting might be better if:

• You like the flexibility of moving at any time
• Your job gets relocated often
• Your housing needs may change soon due to a marriage or baby
• Your credit isn’t high enough to qualify
• Your income isn’t stable enough to justify owning a home
• You don’t have the down payment needed to buy a home

It’s a tricky and unprecedented situation, so gather the facts, do your research, and make the decision that’s right for you. You don’t want to look back in a couple years and wonder what might have been.

More info that may interest you:

• What’s the First Step in Buying a House
• How to Buy a Home for the First Time: A Guide
• What is a fixed rate mortgage?
• Buying a house in San Diego

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