is it safe to buy a house right now?

It’s insane to me how delayed the news when it comes to the real estate market.

I noticed it in 2021 when it took 3 months for them acknowledge how quickly the market was moving and the very insane housing shortage.

It was not easy to be a buyer then and it doesn't feel any easier now because less than 9 months ago, rates were VERY different than they are today.

We have to acknowledge that.

But rising interest rates aren’t the only deterrent. Home prices are still high, and as of right now 9% higher Year over Year. You don’t see that as the headline of any news story, huh?

Rates really never should have been as low as 2 and 3%, and I will argue that if you purchased at that rate, you most likely have set yourself up for a strong opportunity to turn that into an investment property one day.

Let’s face it - nobody wants to be the guinea pig.

Our brains work hard to keep us safe, though it has no idea how to determine the type of threat or how “dangerous” it really is, therefore it reacts the same no matter what.

You may have heard realtors say “date the rate, marry the house”. In other words, the home is who you build your life with and the rate comes and goes. You can ditch it for something better when it becomes available, aka - refinancing!

So is it safe to buy a house?

Honestly, yes. Yes, there have been layoffs across the tech industry. Opendoor lost nearly 1 billion dollars in Q3 and laid of 17% of their staff. That’s not the best news, right?

How many tech companies were built during the last recession?

Home values may adjust over the next few years but if you’re going to be settled for 5-7, it’s going to be pretty irrelevant. If you’re constantly traveling and not staying long-term, then yes - renting might make more sense for you.

I want to wait until rates come down.

They may a little, but there’s absolutely no way to tell when that will happen. What if rates go up though?

Derrick and I wanted to wait a bit to work on our credit before buying to try and get the best interest rate possible. On a whim I decided to change the plan and I am so glad I did. My very low 3% feels really good right now.

If you increase your credit scores down the line or again, interest rates come down, you have a ton of refinancing options!

What about the recession coming up? Seems like the market is going to crash.

I always want to ask these people, why do you want the market to crash so badly? Do you expect to remain employed?

If the real estate market were to truly crash in the way these people want, something very bad has happened and I’ll be surprised if they’re in a place to buy.

It is very hard to get approved for a loan. Guidelines are incredibly more strict than they were in 06 and 07.

BUT ALSO - we live in an entirely different world now. You can create any job you want and be successful. Technology is so freaking advanced that I saw an article claiming that Google Translate for animals is coming soon.

The most important thing right now:

It’s a much kinder market to buyers now. You can get concessions towards closing costs or buying down the interest rate (meh).

I can’t tell you what the future holds, but I can tell you this - housing is a necessity. People move every single day whether it’s empty nesters, growing a family, the passing of a loved one, marriage/divorce or job transfer.