Found a nice house, top of our price range, but requires us to move from our low priced starter home. The economy seems like a mess and economics was never my forte. Is it a bad decision to try to move up given current trends?
Just a guess, but I’d recommend to wait one or two years. Things will get worse, and thus cheaper to buy. In the meantime save up for a larger down payment, instead of stretching your finances now.
After the next election, people will have more hope and prices will increase in the following years. Expect to hold the property for at least 10 years. Anything shorter could be a loss.
No one can time the market. The answer depends on your risk tolerance and security buffers. It is schrodinger’s market. It is always the best and worst time to hypothetically jump in or out of markets. It’s only after you do that the probability wave form collapses and becomes one or the other.
Predictions depend on a stable system. No where is stable so don’t bother.
Your financial situation could vary a lot in ways that may not provide good advice from internet strangers. Suggest talking with a financial advisor, see if you employer has access to one as a benefit.
For buying a house two key factors are: what is your current interest rate and potential new interest rate? Do you have stable income/recession resistant job (even if a recession may be a ways off)?
Timing the economy is challenging and many have lost out on trying. Even if you see bad signs for the economy, it can take years for that to have real world impacts on employment or housing values. The market can stay irrational/in denial for a long time until a crash.
I’k probably overreacting, but I suggest spending your dollars while the dollar still has value.
Instructions
unclear, stopped buying anything.
What is your interest rate like? If you have a super low interest rate, no, it wouldn’t make sense.
Well it’s not going to simultaneously be a bad time to buy and sell.
It can be. I have a 30 year fixed interest of 3.25%.
Selling now means buying at 6.3%. Terrible time to both buy and sell.
Fixed for 30 years?! Holy shit, we can only fix for like 3 years here
That’s the standard in the US
1.5 here! Damn glad we got in when we could.
Yeah but you could do that with the plan of refinancing in 5 years or so when interest rates are different. Still a gamble but you’re not stuck at 6.3.
A guarantee of 3.25% beats 5 years at 6.3% and the hope it gets better… 😉
I don’t think anyone here would be qualified to answer that, nor would anyone qualified to answer that be necessarily right.
If anyone knew that they’d be very wealthy
I have a hunch that there’s a very stark reality to this statement, when it’s supposed to have the meaning “no one knows”.
It’s kind of a common joke among the American stock markets.
Depends on how secure your financial future is.
Maybe you’re in a good predictable business, or a nice stable government job, maybe you’re in something that’s making money right now, but could turn out to be a flash in the pan like startups, or AI or crypto or Pokemon cards.
Anything can happen, but if you can pay off the loan on your new house quickly, that reduces risk by a lot.
It’s always better to not be in the US
If top of your price range means you’ve already calculated for what would happen if your income was jeopardized, then go for it. If top is living beyond your means, then probably not a good idea any time.
in usa top of our price range means it’s more than they can afford and they are betting on their income going up in the future
As a rookie, look to mortgage rates. Are long term rates significantly lower than shorter term rates? That indicates the big heads (the people who get paid to do this) are saying the market will soften.
The issue isn’t the timing, it’s that your buying at the top of your price range, and therefore overspending.
Most Americans own too much house, and too much car. There is no reason a 2 person household needs a 3000+ sq ft home… and 2-3 60K cars… and yet that’s incredibly common.
BUY LESS. Be more financially secure!
Ah man, that’s a tough call. Personally we’re only moving if the place we move to has some potential for homesteading and self-sustainability to ride out this storm. These next years are going to be pretty turbulent to say the least. We’re laying low and living below our means.
To me the real question is: is your income recession proof? (eg, medicine or some essential service that even survived covid). Because we’re in a silent recession now, likely headed for a depression or major stagflation.
We did it. Its tuff. But the home makes the difference in our lives. Betting on wage increases over the long term is hard to calculate but an important part of taking on more debt financing. Rates for mortgages are still low and can aid that financial decision against increases in future wages.
How are you defining low-rate mortgages right now?
