When to buy a house?

My mom lives in Philly in a pretty boring neighborhood off the Westchester Pike. Real estate always moved slowly in her neighborhood because it just such a dull area. Since the pandemic, houses have multiple offers the first day they are listed. People are piling in from living in apartments downtown and even as far as from DC and NY. I would definitely wait this out and see whether the market goes in the other direction if everyone gets vaccinated and moves back to the city.

my advice:

Buy when you can afford to buy, and you intend to stay put for 10+ years. The market forces that will drive prices up or down are the same forces that tend to affect your own level of affordability. If prices go down next year, it will likely be because something like a market crash and/or interest rate hike, or restrictions on lending, huge spikes in unemployment, etc. Unless you're just sitting on a pile of cash under the mattress, then any of those factors could affect you, too.

No one can say for sure what the future holds, but the housing supply is slow to increase, and if you live someplace nice, demand in the future will likely be high. Home prices, in the long term, tend to go up and outpace inflation.

good luck

My relative just sold a family home in a NY suburb for 100,000 more than she would have gotten right before Covid. It was on the market for 3 days.

I'd wait it out and save a bit more too and get all your paperwork in order.

Is your 30% increased based on no payment and inclusive of taxes? You said that you could pay cash.

The 30+% increase in my monthly payment assumes a 25-30% down payment and does include taxes, insurance, etc.

I could pay cash or a larger down payment, but I probably would not choose to do that. With such low interest rates, I would be pushed toward the lowest sensible down payment.

I would be willing to buy a house that needs work and fix it up, but the prices for that kind of place are probably even more unreasonably high right now compared to houses that don’t need any work. Everyone and their mom thinks that they can ask for 20% over last year’s market value and sell their house, but they’re not wrong right now.

People from NY and NJ are moving to traditionally lower-cost-of-living areas in PA and driving housing prices up because they will pay way over normal market value because they are used to seeing higher price tags in their former hometowns.

Don't do it. That is not a good deal. Better off renting and putting all of that additional money in the stock market forever.

If you're in an area with a booming housing market, buy if you plan to be there less than 3 years. Paying rent is like burning money. Little benefit unless it is crazy low rent in a good place.

Usually the best time to buy in a growing housing market is yesterday. A house is investment, not just a place to live. If the market is going up, in at least 3 years, you will probably recoop any real estate fees to sell with the increase in the market. Everything else is gains for you. Equity towards your next place. Mortgage interest is tax deductible unlike rent.

Always buy a place that will be easy to sell. Location, location, location. Never buy a 2 bedroom house or one with less than 2 full bathrooms. Very difficult to resell. If you pay a little more for a place with a great view and great location, it'll pay off in the long run, especially when try to sell. Always and only buy a sellable property. Nothing more miserable than trying to sell a house that won't sell.

If you remember, post back in about 3 years and let us all know how it turned out. Housing can be unpredictable.

Prices may be high BUT interest rates are extremely low. I just bought a new house with a 2.5% interest rate for a 30 year fixed mortgage. If you have good credit then you will get a great interest rate, which might make buying a good move.

A few posters already mentioned the uncertainty in the market. I agree with that who knows where it could go in the next couple of years. Overall I do have a hard time seeing a steep drop in home values over the next 3 years since the FED has guaranteed the 0 rates for a few years and there is no way Biden will raise them anytime soon. The other factor is if inflation hits as many expect then the burden of your loan will decrease.

If you're settled for the next decade or more buying probably makes sense but if you likely will move in a couple of years continuing to rent likely is the best decision if in the short term it will increase cost by 30%. In the short term, a lot of the equity built would be eaten in the transactions.

Hi! I believe that you should choose the moment when you will be sure that you have the stock of money that you will have anyway. That is necessary just not to become bankrupt because of this buy, as I think. Of course, if you have some expensive decorations in your house like rugs from https://www.dorisleslieblau.com/ you can sell it and receive some additional money. I suppose that it is better to wait for the end of the pandemic. The prices should be better, as I think

I realize this thread was bumped for an ad but . . .

Buy a house when you personally are ready to buy a house.

Don’t try and time the market.

You see how that’s been getting away from you.

Don’t put additional down to lower the payment. You can use that cash for better things.

I’d suggest not to buy something you want to flip.

Maybe buy something that is an upgrade from your apartment that you can rent out in the future if you move. Keep it for years.

The most important thing is liking the house you buy.

Getting a deal on a house you don’t care for and will be stuck with is really not a good deal.

There’s no “right” time or age to buy a house, but it’s smart to evaluate where you are in life as you decide whether or not to buy. A property purchase is the most significant investment in many peoples’ lives, and your status as a homeowner can help you or hurt you financially. I personally bought my first ever property when I was 27, before that I was renting one. I just started to save money, work more, and finally made it. I bought a very cheap house and started to renovate it. When I finished I sold it to https://speedpropertybuyers.co.uk/we-buy-any-house/ for a nice price and this way gained some money as well. Now I bought myself a spacious apartment and I love it.