Buy now or wait? The big question in 2022
Many people try to buy their home or investment property. They want the lowest rates, the lowest prices and, ideally, a comprehensive buyer’s market.
Unfortunately, these conditions rarely meet. And if you’re waiting for that picture-perfect moment? You might just be waiting forever.
That’s something mortgage expert Evan Simmental discussed on a recent episode of the Mortgage Reports podcast. Specifically, he answered a common buyer question he’s been getting: Is 2022 a good time to buy a home? And what about 2023?
Here’s what Simmental had to say — and what you need to know if home buying is on your radar this year or next.
Listen to Evan on the Lending Reports Podcast!
Is 2022 a good time to buy a home? Will 2023 be better?
“I get that question all the time,” Simmental said on The Mortgage Reports Podcast.
Although today’s rising home prices and high mortgage rates may be discouraging for many, Simmental says it’s still a good time to buy — at least for the right buyers.
“I think [late] 2022 will be a better market because interest rates have gone up,” he said. “A lot of individuals get prices from certain markets, which means they can’t buy what was approved six months ago.”
Generally speaking, real estate is considered a good hedge against inflation, helping to protect your money as inflation rises.
This ultimately cuts down on the competition and makes things a little easier for home-hunting home buyers.
“Things are slowing down,” Simmental said. “It won’t break. It doesn’t sink. The momentum will slow down, and we won’t see the double-digit appreciation numbers that everyone is used to seeing.
On top of that, there’s inflation to consider, which is now at its highest level since the early 80s. In general, real estate is considered a good hedge against inflation, allowing your money to protect — and even grow — as inflation rises.
As Simmental explains, “Real estate is a safe bet with inflation.
Is buying a home in 2022 the right decision for you?
While these are all good reasons to buy a home, Simmental says it’s important to use your personal situation as a driver — not the market — when making a decision.
“You have to look at your unique situation,” Simmental said in the podcast. Ask yourself:
- Where are you in life?
- Are you looking for stability?
- Looking to plant roots?
- Do you see yourself living in that city for five, 10, 15 years?
If so, and the space in your life that fits home ownership, maybe it’s time to start house hunting. You should also look at your financial picture.
Simmental encouraged listeners to ask themselves:
- Do you have a stable job?
- Do you have a salary?
- Do you have savings?
- Do you have a 401k you can tap into?
- Do you have stocks or bonds you could invest in?
- Do you have bitcoins to cash out?
If you answered yes to any of these questions, Simmental says it’s definitely a good time to buy – especially if you’re spending those funds on rent (someone else’s loan / equity) or investing in low-return properties.
“If you can afford it, you should enter the market because you will appreciate it and you will have tax benefits,” Simmental said.
Don’t time the market
At the end of the day, Simenthal said, it’s not about finding the perfect final time to buy a home. It’s all about timing your shopping specifically for you.
And when you’re ready? The sooner you can buy, the better.
“Never try to time the market – it’s always better to waste time. in The market, “said Simmental.
“Historically, we know that real estate appreciates. If we look at it over the last 100 years, it’s gone up. So take advantage of being a homeowner,” he continued.
“If you answered yes to all those questions, you have your finances in order, you have your credit in order, and you have your down payment and your property, then yes, 2022 and 2022 is a great time to buy. 2023″
Want to buy a home in 2022?
If you’re thinking of buying a home in 2022 or 2023, find a mortgage professional in your area. They can help you decide if the time is right and recommend the best mortgage options for your purchase.
The information on the Mortgage Reports website is for informational purposes only and is not an advertisement for any products offered by Full Baker. The views and opinions expressed herein are those of the author and do not reflect the policies or positions of Full Baker, its officers, parents or affiliates.