You want to buy a home, but the housing market is confusing. Should you jump in and buy a house or wait? Check out these 3 reasons why now is the time to buy a house.
- More homes for sale as Millennials want to sell their homes
- Buyers believe it’s not a good time to buy a house
- Waiting to buy will be more expensive
1. Millennials
According to realtor.com, in the next 6 months, 64% of prospective home sellers plan to list their homes for sale. Millennials are the majority of those likely to sell their homes as they aim to move into larger houses. This millennial movement to list homes for sale over the summer and early fall of 2022 will boost inventory and start to satisfy the needs of potential buyers like yourself.
2. Other Buyers Don’t Believe It’s a Good Time to Buy a House
Mortgage loan applications decreased 3.4% during the second week of April 2022, indicating that some buyers don’t believe it’s a good time to buy a home. Fewer home loan applications and fewer buyers to compete with may make it an ideal time for you to find a home to buy.
There was an increase in the percentage of buyers (28%) who said they would rather rent than buy a home. More people leaning towards renting opens up more opportunities for you to buy a home.
- Fewer home loan applications
- More potential buyers believe it isn’t a good time to buy a house
- Increased number of prospective home buyers more likely to rent than buy a home
3. Costly to Wait to Buy a Home
When you wait to buy a home, you can expect to pay more for the home, especially in the 2022 housing market. If mortgage rates continue to rise, so will the amount you’ll pay for your monthly mortgage. Imagine paying $1,501/month for the mortgage on a $350,000 home today vs. buying after mortgage rates increase and paying $1,778/month for the same house. According to many reports, home prices are expected to rise in some areas of the country (see NAR graphic below). If you want to buy a house, take advantage of today’s mortgage rates and pay less for your monthly mortgage.
Source: NAR, Feb. 2022
Conclusion
There are a number of excellent reasons you should look for a house to buy in today's market. More houses are expected to be listed for sale as millennials chose to sell their homes in 2022. If other buyers have given up the desire to buy a home, that leaves more room for you to find the house of your dreams with less competition. Finally, if you wait to buy a house this year, you will be paying more for your mortgage payment as rates increase. Talk to your real estate agent today and learn more about your options as you seek to buy a house.
