NOW MAY NOT BE A GOOD TIME TO BUY A HOME

Welcome to the channel and welcome back to another quick video. Now, on this video, I want to talk to you guys about why now may not be the best time to buy a home. I'm going to give you five reasons. Now, of these five reasons, if these things don't apply to you, that's cool. But I do want you to stick around to check out the whole video because there's something in this video that may apply to you and it may be something that you need to consider if you're buying a home. Now, my name is Eric and on this channel, we help regular, ordinary, average, everyday people just like me, just like you grow their money, manage their money, become better stewards of their money. Now, if this is your first time visiting this channel, do me a favor, subscribe. And if you get anything at all out of the video, do me a favor, smash the thumbs up button, share the video and drop a comment below. And let me know if you think now is a good time to actually buy a home. Let's jump into these five reasons why now may not be the right time to buy a home. The first reason is that home prices are continuing to go up. They're continuing to increase. And you're still seeing bidding wars that are happening where a property might be on sale for $300,000 and it sells a week later for $350,000. It's happening in a lot of places where people are bidding and outbidding each other to get a property. Now, why is that a problem? Well, because you may end up paying a lot more for a piece of property than it's actually worth. And you may say to yourself, well, if it's sold for $350,000, then that's what it was actually worth is $350,000. And that's okay. And that's understandable, but you don't want to put yourself in a position where you buy a property for $350,000. It's way overpriced. And in one year from now, the property is worth $290,000 or it's worth $320,000. And now you're sitting on a property that you cannot sell without being upside down in the property and losing money. So you don't want to get in that situation. So there's a risk involved with some of these bidding wars that you're seeing. Some of these sales prices of homes that may be a little bit overinflated. And they've been that way for a while. Now, a year ago, if you were saying, I don't want to buy a property, well, the home price just kept going up and kept going up and is still going up. So that's another risk that you face, but you got to think about, do you want to get involved in a bidding war for a piece of property and be willing to pay 5, 10, 20, 30, maybe even $50,000 over the asking price. And if you're not ready to get in that type of bidding war, this may not be the home buying environment that you want to be involved with. The second reason right now may not be the right time to buy a house is simply because the increase in interest rates. Now, interest rates alone by itself is not a reason not to buy a piece of property or to buy a home. Because we know that these record level interest rates that were 2% and 3%, those things are an anomaly in the big picture of home buying over the last 50 years. In the 1980s, the average mortgage rate was in double digits, 12%, 13%, 15%, 10%. That was the average back then and people were still buying homes. The only difference now is over the last 10, 15, 20 years, we're not used to rates like that. So now rates are kind of creeping up near 5% and everybody's in a frenzy. No need to really be in a frenzy, but just remember that if you buy a house now or even going forward, your rates are going to be 5%, 6%, maybe 7% or 8% in the near future. So just understand that rates are going up and you have to be willing to pay the higher rates. You have to make a decision if you want to pay those higher rates, if you want to buy a piece of property, then you've got to make an overall decision if now is the right environment for you. Speaking of low inventory, that's the third reason that you may not want to buy a house right now. When I say inventory is low, it just means that the supply of houses that are out there is low and it's been at a record low for a while. Now, demand is high, supply is low, interest rates are increasing. That combination becomes tough for a lot of people because it helps boost up the price of houses. So another reason why you need to make a decision whether or not this is the right time for you to jump into a home. Because at some point over the next year, two years, it could be six months, could be three months, inventory is going to increase. There's going to be more inventory. As rates increase, the demand is supposed to go down a little bit because there's going to be people that don't want to buy a home as interest rates do increase. There's going to be a segment of people that say, I don't want to pay 5% or 6% interest rates. Now, when that happens, demand is going to lessen. And when demand lessens, typically the prices are going to level off or slightly go down. And that may be a better time for some people to actually get out and buy a home. Now, the fourth reason that you may want to wait to buy a home is simply because you may not have another home. So if you have another home to actually sell in this type of hot market, then you're reaping the benefits of the market. But if you don't have another home to sell, then you're not reaping the benefits of the market by selling a property. You're just subject to the market by having to pay the higher prices for the homes that are actually out there and available. And that may be a deterrent and it may help you make a decision to not buy right now because it's going to require you to come out of your pocket with a little bit more money right now. Now, the fifth and final reason you may not want to buy a house right now is just simply, guys, home prices are up in the last year, 18 to 19% across the board. 18 to 19% is an incredible increase in the price of property. Properties don't go up 18 and 19% in one year. It just doesn't happen. Hasn't happened for decades. And so how long will this last? We just don't know. I don't think it's sustainable for a long period of time. And a lot of people don't think it's sustainable. Typically on an annual basis, if you can get three to four to 5% of an increase, you're happy. So to be at 18 and 19% increase over one year is amazing and it likely will not last. And so if you're thinking about buying a home right now, you should consider the fact that maybe things won't keep going up the way they are and things will level out. And that $300,000 house today is probably going to be worth $300,000 in a year. And by the time that year comes around, I will have saved more money, gotten a better financial position in general, my own personal situation, and things may change, but you've got to make that decision. And because of that, now may not be the right time to buy. You may want to wait a year or year and a half, maybe six months to see what happens to the market and if it will actually level off or even slightly decrease just a little bit. Now, listen, if you've got your credit score, A1 shape, if you've got your down payment ready to rock and roll, if you have good job security and you have good financial stability, now may be a great time for you to purchase a home. But if you don't have some of those things in order the way you want them, perhaps right now may not be the best time. And that's okay. As long as you have all of your ducks in a row, it's never a horrible time to buy a piece of property that you're going to live in, especially if you plan to live in it long-term. But also consider this guys, if you plan to be in a home on a short-term basis and maybe sell that home in a year or two, you may want to wait on buying a house because we don't know what's going to happen to the market in that short term, that short window of one to two years. Things could level out and dip a little bit and now you're upside down the property. Long-term, great. Short-term, be careful. So with that said, hey, those are the five reasons that I believe you should maybe consider waiting before you buy a home. Again, guys, if you got anything at all out of this quick video, do me a favor, drop me a comment below. Let me know what you think. What do you think is happening and going to happen with the housing market? Do you believe it's the right time to buy a home or not? Let me know what you think. Remember, smash the like, share the video and subscribe if you're not a subscriber. Listen, the best person to take care of the old you is the young you. Do me a favor, as always, take good care of yourself and take good care of other people. Until the next video, peace.