Is a house worth buying now?

amother

Thu, Jul 01 2021, 12:25 pm

First timer
Desperate to move
I'm getting mixed messages.
Some say Now is the time, can easily get loans.
Some say, wait bc it will come crashing down soon, and prices will drop.
My mind tells me prices never really go down..
WWYD?

amother

Smokey

Thu, Jul 01 2021, 12:27 pm

We looked into buying now, the prices are absolutely beyond insane in my area now. Prices have risen dramatically. We can't afford such prices. We're moving to another rental and keeping an eye on the market.

amother

Thu, Jul 01 2021, 12:52 pm

Its not like I ever heard anyone say buying a house is cheap. Like food:) People kvetch that food is so expensive, yet the prices are constantly rising..

teachkids

Thu, Jul 01 2021, 12:59 pm

If you're planning on selling in less than 5 years probably not worth it because you won't get what you pay for it. If you're planning on staying long term it should be worth it since you're saving a lot on low rates + over time prices will come back up to what they are now and more.

amother

Brickred

Thu, Jul 01 2021, 2:01 pm

We just bought. Yes, it was a whole crazy thing (especially the bidding part) but we're still better off this way. Our lease was ending and the landlord did not want to renew, and similar rentals were more than our mortgage, even at these crazy prices. We locked in at a crazy low interest rate. The market will cool off, but it is unlikely prices will go down by that much, and that crash everyone keeps talking about may or may not happen. Assuming you're planning to stay awhile, it's probably worth going for now, it's not going to be cheaper any time soon.

amother

Molasses

Thu, Jul 01 2021, 2:06 pm

We are looking to buy now as the prices never really go down also out of town - not in main tristate areas there aren't that many houses for sale and the ones that are go pretty fast and for much higher prices I rather buy now then get stuck with nothing. we are thinking about buying and renting it out for a while to pay off some mortgage and then moving. This way we can break even at some point. It costs same amount for us to move out of town as the rent we pay now and the property is bigger/nicer/healthier. I am sick and tired of the city life I need quiet and space.

Amarante

Thu, Jul 01 2021, 2:12 pm

If you can afford it then buy it.

I don't think we are in a housing bubble like existed in 2008 so I don't think there is going to be a drop in housing prices such that you will swoop in for a bargain.

If anything mortgage rates are at historic lows so the costs of owning a home might be less since your mortgage will go further.

But if you can't afford a house without over-extending your financial resources, then you shouldn't. Most people have to stretch a bit for their first home and then after a few years your mortgage remains constant and your income rises a bit and then eventually your housing costs are far lower than they would have been if you were renting an apartment - e.g. I live in a condo and my total housing costs - mortgage, monthly homeowner fees, taxes are much less than what people pay to rent the same unit in my building and of course the FMV of unit has skyrocketed since I bought it.

amother

Thu, Jul 01 2021, 4:10 pm

Thank you.
I'm renting in a condo. Sick and tired of it. I need my space too. I've never had money for extras, just barely covered. But we pay all bills, tuition, rent, and food, etc.
Can I afford? Idk. Its gonna be a struggle the down payment, cost of moving, mortgage, taxes..But paying rent is also a struggle. And we will have to do what we can..we work to live.
Im skeptical if prices will ever go down.

amother

Lightgray

Thu, Jul 01 2021, 4:25 pm

It really depends where you're looking.
In Brooklyn and Lakewood prices have been on the rise for years and will likely continue to rise. In most established Jewish communities prices go up and almost never go down.
The good thing about buying now is mortgage rates are relatively low.
I just refinanced and got my rate down to 2.99 from 4.65. That was 8 years ago. That's a huge difference.
The value of my house in those same 8 years went up by about $300k.