Buy Now or Wait? 15 Pros and Cons for Today’s Housing Market

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Anyone following the housing market knows that the cost of housing has risen exponentially in the last few years, complicating things for aspiring homeowners and prospective real estate investors alike.

The biggest question for both groups is whether it is the right time to purchase a house or not.

There are a lot of opinions to sift through on both sides.

Let’s look at some of the reasons to buy and not to buy in this great real estate investment debate.

#1. If You’re Living In It, the Goal Isn’t Appreciation

From a homeowner’s perspective, your biggest concern right now isn’t the appreciation of your asset.

Your goal is to own a home.

If you can afford it and believe that now is the time, go ahead and purchase a home.

#2. The Rental Market Is Hot in Your Area

If the rental market is hot in your area and it makes sense for most residents to rent rather than own, they’ll rent.

This presents a lucrative opportunity for those looking to get into real estate (given that you can handle the demand and the costs of renting out properties).

#3. Demand Will Continue to Be High As Interest Rates Drop

High interest rates are among the most significant barriers for investing in homes.

However, demand will continue even as interest rates drop.

You can then refinance and take advantage of the high demand, boosting housing prices.

#4. You’re Looking at Real Estate Markets That Have Been Historically Cheap

Most people tend to focus on the extreme home prices in more densely populated and expensive states.

However, there are plenty of states where home prices are more affordable and within reach.

Consider buying a home where housing prices are lower and people haven’t flocked to yet.

#5. Homes Increase in Value Long-Term

The reality about home prices is that they increase over the long term.

Even if there were to be a crash, it’s unlikely that you wouldn’t eventually recover and see your asset grow in value.

#6. You Can Carry the Risk

One of the biggest questions to ask yourself is if you can carry the risk.

If you feel you’ll overextend yourself by purchasing a home to make a profit, you will likely put yourself in a precarious financial position.

But if you can take the risk, now might be the perfect time to buy and see what happens to your investment.

#7. Prices Might Remain Fairly Stable for Now

Prices are currently falling and stabilizing because of the increase in interest rates.

This makes it an opportune time to buy before interest rates fall and prices start to rise again due to the growing demand for housing.

#8. You Already Have a Primary Residence

If you already have a primary residence, you’re not potentially losing a home in an effort to invest your money into something that will grow with value.

If something happens, you can sell the new home you’re buying as an asset while continuing to live in the current one.

#9. Various Costs May Outpace Growth

It’s important to remember that housing is not always a great investment.

With prices and interest rates being what they are, the growth you see may be unable to outpace all of the insurance premiums, property taxes, and other costs you’re responsible for.

Take this into consideration when you’re thinking about buying in today’s market.

#10. Buying Costs More Than Renting

If you’re considering buying a home just to escape renting, remember that home ownership isn’t always what it’s made out to be.

Your mortgage, various renovations, repairs, and other costs can quickly put you over the current amount it costs to rent a home in your area.

Buying isn’t always better than renting, so you shouldn’t use one to escape the other if you’re struggling to afford your rent.

#11. All Rentals Aren’t Necessarily Appealing

Most people assume that buying a home to rent out will be a great way to make a quick buck.

But that’s not necessarily true.

Platforms like Airbnb have been struggling for some time, making it more difficult for those who want to casually rent out their home.

If you’re more serious about being a landlord, you run the risk of having a vacant property that costs you more than it makes you.

#12. Flipping Isn’t Always Worth It

People consider flipping to be a pretty lucrative side hustle.

But with high prices and the risk of getting a home that’s more trouble than it’s worth, you could easily sink money into a property that nets you next to nothing.

#13. Housing Shouldn’t Be Your First Investment

Real estate is touted as a great way to build wealth, and it can be.

However, it should never be your first investment.

Consider other avenues for investing instead of trying to get in on real estate in today’s housing markets.

Alternative investments should always be a second choice after all the traditional routes have been exhausted.

#14. More Housing Needs to Be Built

One primary concern you should have is that there are not enough homes to invest in, and more need to be built before you consider housing an investment.

Mega-corporations like BlackRock might have inexhaustible wealth to buy up all the housing, but you don’t.

#15. Some Are Worried About a Crash

Although fears of a crash have been relatively low in the past year, some still warn about an impending one.

This existing possibility is always a potential risk to any asset you’re considering investing in.

Take care to fully understand all of the ins and outs and available data about the real estate market to see if you should be concerned about it, too.

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