A lot of renters and soon to be first time home buyers are asking themselves “Should I Buy a House Now or Wait Until 2024?” It is a critical financial choice that can significantly impact your future, so let’s go over how to make that decision for yourself.
We’re here to guide you through the decision-making process step by step.
Below, we’ll explore the factors you should consider, debunk common myths, and equip you with the knowledge you need to make an informed choice on if you should be buying a house now or waiting until next year.
BONUS Resource For First Time Home Buyers: Listen to episode 200 of the How To Buy A Home podcast to hear real estate forecasts and predictions 2023 and 2024 to help you figure out if you should buy a house now or wait until 2024
Step 1: Deciding and Believing If Buying A House Now Or Waiting Until 2024 Is The Right Move For You
Before you dive into the nitty-gritty of the real estate market, take some time to decide and believe in your goal.
Ask yourself if homeownership aligns with your long-term financial plans and lifestyle.
Remember, it’s not about following societal norms or succumbing to pressure; it’s about making the right choice for you.
Trust in the numbers and educate yourself to dispel any fears or misconceptions that might be holding you back.
Check out episode 202 of the podcast for a 30 minute deep dive on how to answer that question of “should I buy a house now or wait until 2024?”
Step 2: Understanding Your Market
To make an informed decision, get a grasp of the current real estate market trends.
Research recent home sales in the area you’re interested in.
Don’t be fooled by listing prices; focus on actual sold prices to gauge the market’s health.
This will give you a better idea of home affordability and potential appreciation rates.
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Step 3: Analyzing Your Finances
Take a closer look at your finances to assess whether buying a home now or waiting until 2024 makes more sense.
Evaluate your savings, monthly budget, and debt-to-income ratio.
Aim to save at least 8% of your desired home’s price to cover down payment and closing costs.
Work on improving your credit score if needed, as it can significantly impact your mortgage interest rate.
Step 4: Considering the Housing Inventory
Keep an eye on the housing inventory in your desired location.
Recently, we’ve experienced a notable lack of inventory, resulting in higher home prices.
If you’re considering waiting until 2024, be cautious, as experts forecast an increase in home prices over the coming years.
Waiting might reduce your options and increase the cost of homeownership.
Step 5: Factoring in Market Forecasts
Consider market forecasts and expert opinions when making your decision.
While no one can predict the future with certainty, financial economists generally expect housing prices to continue rising in 2024 and beyond.
Waiting might not necessarily lead to more favorable conditions.
Step 6: Exploring Loan Options
Explore various loan options that suit your financial situation.
Don’t fall for the myth that you need a 20% down payment; many loan programs offer lower down payment requirements.
Relevant side note: Don’t be afraid of PMI either, it can be a great tool for first time home buyers to get their home for a more affordable price (yea, you read that right). Click here for more PMI myth busting.
Consult with a trusted lender to understand the loan terms, interest rates, and monthly payments based on different down payment percentages.
Step 7: Assessing Your Long-Term Goals
Think about your long-term goals and how homeownership fits into your life plan.
Owning a home offers stability, builds equity, and can be an excellent investment.
If you see yourself settling down in a specific area for several years, buying now might be a strategic move.
Step 8: Getting Professional Guidance
Seek guidance from experienced real estate and lending professionals, especially when you’re unsure about the best course of action.
A reliable realtor and lender can help you create a personalized strategic plan based on your unique circumstances and goals.
Conclusion: Your Decision, Your Future
The decision to buy a house now or wait until 2024 is a personal one, and only you can determine what’s best for your financial future.
Armed with information and a clear understanding of the market, you’ll be better equipped to make a confident choice.
Remember, education is the key to dispelling myths and overcoming fear. Whether you decide to buy now or wait, having a plan is crucial.
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