After more than two years of unprecedented price growth and wild bidding wars, indicators suggest that the housing market may finally be cooling down – or at least normalizing. So to buy or not to buy, seems to be the question, especially if you are a first-time homebuyer.
There are more homes going on the market, which means buyers have more options and may have more opportunities to negotiate with sellers on a more level playing field. But what about those home prices, will they begin to fall as a result? And, if so, should first-time homebuyers hold off on buying for now until that happens?
In a recent article, Realtor.com asked the question, Should First-Time Homebuyers Press the Pause Button? It turns out that there are arguments for each side.
It’s likely that those who choose to wait until the fall or next spring are likely to encounter even more homes for sale, additional price cuts, and an increasingly buyer-friendly market. However, while prices might go flat, or even dip a little in certain parts of the country where they shot up the most, they’re not expected to fall significantly. But that doesn’t mean waiting to buy is necessarily your best move. Consider …
- There are still far more people who would like to become homeowners than there are properties available for them, which is expected to keep prices high.
- Mortgage rates are an unknown factor, and if the rates do increase due to actions by the Federal Reserve, homeownership will become even more expensive than it is today.
- Sellers are likely to be receiving fewer offers than they were just a few months ago, which means buyers might not have to offer as much over the asking price, can avoid waiving home inspections, and may be able to negotiate repairs and other problems with the sellers.
When it comes down to it, most real estate experts admit they don’t have the best track record of predicting what the economy or housing market will do. Their advice is to watch the markets, local housing trends, and broader economic factors to determine when the time is right for you.
