Last year, as many as 53% of people believed it was an excellent time to buy their own home. And if we recall 2003, 83% of respondents were positively disposed. Now, only 30% of people believe that the conditions for buying a home are favorable.
High mortgage rates and rising housing prices
Let's find out why now is a bad time to buy a house. According to real estate sources, the mortgage rate increased by 5%. It should not be forgotten that the prices of apartments and houses do not stand still either. Unfortunately, they are growing. The average price has now crossed the $400,000 mark. According to the summary of brokerage companies, the average mortgage payment will be $644 more expensive. That is, if you do not have savings, a job that brings a lot of money, or an inheritance from rich relatives, you will have to take out a mortgage on not very favorable terms.
If you currently have a mortgage on your home, you can try to refinance it. This will help reduce the financial burden. This way, it will be possible to pay for real estate faster and save a little.
But you should not forget that all this is possible only if you find suitable housing. It is a bad time to buy a house because of the lack of offers on the market. The increase in prices led to the fact that people stopped buying real estate. Because of this, apartments stopped being put up for sale. As a result, a vicious circle was formed, indicating that it is a horrible time to buy a house now.
What to do in this case? There are several options:
wait for prices to drop;
choose from what is available.
Analysts predict that prices will fall. But this does not mean housing will become affordable for every average citizen. In this case, it is necessary to consider not only the value of the real estate but also the offers of mortgage companies.
In the second case, you will have to put in a lot of effort to turn your home into your dream home. Plus, you will have to limit yourself to paying the mortgage on time. So it's safe to say that now is a terrible time to buy a house.
It is worth noting the attitudes of young people in this matter. People aged 18 to 34 are significantly less likely to purchase housing. This is due to the low level of income compared to the older generation. In addition, mortgage companies rarely accept the application of clients of this age. As the survey showed, only 25% believe it is worth buying your own home. Last year, 42% of young people thought so.
Economists note that the younger generation strongly feels that is it bad time to buy a house now. The desire to have one's own home is strongly intertwined with ambitions and mood. Young people want to have everything at once. And in the current conditions, they cannot afford even a small cozy apartment. It's quite depressing.
Should we expect a fall in real estate market prices?
A logical question: if now is this a bad time to buy a house, when will it be good? 70% of people are optimistic. They believe that prices will be lower already next year. Surprisingly, experts agree with this.
Buying real estate is a serious topic that should be approached with understanding. Considering all factors, the investment in housing will not be successful. It is better to suffer a little, to live in a rented apartment, and not to buy the first better house at an inflated cost.
The chief economist believes there will be no total drop in prices in the coming months. This is due to the small number of offers on the market. And while is it a bad time to buy house, price growth should slow down over the next few months.
While the cost of housing remains relatively high, there are many factors to consider. For example, choose a design style, furniture, and garden decoration near the house. This way, it will be possible to start realizing your dream quickly after buying real estate.