The dream of many people is to buy their own home, but there are 5 reasons why you should NOT buy a house right now, that are currently occurring that indicate that it is best to wait a little longer before acquiring a new home.
Every person’s dream is to have their own house. However, this dream could become a real nightmare if you get a home in these times.
And it is that there are several conditions that are currently occurring that indicate that it is best to wait a little longer before acquiring a new home.
5 reasons why you should NOT buy a house right now
1. Mortgage rates are rising
You may have heard the news that the Federal Reserve raised the fed funds rate in March for the first time since 2018. And when the Federal Reserve raises its rates, lenders do the same.
30-year fixed mortgage rates have already topped 4.5%. That means it could be cheaper to stay in your current home rather than buy a new one, Money Talks News advised.
2. Your options are few
Even if you want to buy a house, there may not be many properties for you to choose from. In January, the national inventory of homes for sale hit its lowest level since 1999.
This means current homebuyers may have to settle for locations and features in their new home that are not to their liking. Maybe it’s best to wait until there are more options, and then you can buy the house you really want.
3. Houses could be overvalued
Because there are so few houses on the market, the ones that are available can be overpriced. This seems to be happening already in some cities in Florida and Arizona.
Instead of paying more by buying now, it may be best to wait until the market lowers prices.
4. You might have to get involved in a bidding war
If you buy a house now, you may have to engage in a bidding war with other potential buyers, causing the price to rise even higher.
Between July 2020 and June 2021, homes typically sold at full asking price, with 35% of buyers paying more than asking price, according to the National Association of Realtors. That trend appears to continue this year in many areas.
5. It is likely that a house costs more than you think
You may think the cost of a home can be measured by your mortgage payment, but owning a home comes with all sorts of additional expenses that can negatively impact your finances. These costs you may be overlooking include insurance, utility bills, taxes, and more.
An analysis by the real estate firm Clever found that the average homeowner spends $15,405 per year on his home, in addition to what he pays on his mortgage.