Current Events > Market-savvy folks of CE, should I buy a house?

(+) Yeah! (+)

I have lived in a rented three person town house for like 7 years with two roommates. It's dirt cheap, but like I'm 33-years-old, work a secure job with a healthy salary, and I'm very ready for my own space, but I have put off buying a house for the last couple years because the market has been crazy and my rent has been cheap. But I think I'm ready to bite the bullet and go, but I just have this creeping fear I'm gonna buy a house, the market will crash and I'm gonna get fucked.

So like for those more market-minded than I, what's it look like. My very market-savvy dad is telling me to maybe rethink it for now, but I want other opinions.

How much money do you have set aside?

Every housing market is local.

idaho? Dont buy now.
St. Louis or Chicago? Buy and dont look back.
Utah? Dont buy now.

where are you looking?

Turbam posted...

How much money do you have set aside?

$200k that is effectively liquid. I live in the KC Metro so it's pretty low-cost of living.

Like I know I can afford a $400k house (which is a healthy-sized house in the market), my fear is that I'll buy a $400k house that immediately becomes a $300k house. Which is sorta irrational, I'm aware since I wouldn't be selling the house anytime soon.

KC is already seeing broad price cuts. Id say wait this summer out and watch winter inventory. Get pre-approved for purchases and keep looking. When you find a house you love or you love the price, make an offer then.

Compsognathus posted...

I have lived in a rented three person town house for like 7 years with two roommates. It's dirt cheap, but like I'm 33-years-old, work a secure job with a healthy salary, and I'm very ready for my own space, but I have put off buying a house for the last couple years because the market has been crazy and my rent has been cheap. But I think I'm ready to bite the bullet and go, but I just have this creeping fear I'm gonna buy a house, the market will crash and I'm gonna get fucked.

So like for those more market-minded than I, what's it look like. My very market-savvy dad is telling me to maybe rethink it for now, but I want other opinions.

Even the fed is saying "don't buy a house"

Anyone who claims to know what the market will do is most likely wrong, tbh.

That said, post #5 hit it on the head. Trying to time the market will never work, so stick with something you can afford and would be ok being stuck in if prices dip and you find yourself unable to sell.

I personally believe that bubbles in certain areas that are ridiculous and completely overinflated will pop at some point here (Nashville TN, for one), but that simply might not be the case everywhere. To put it in perspective, only recently did a townhome of mine in IL get back above what I paid for it in 2005. Its gone up tremendously as of recent, sure, but knowing its not valued much more than it was 17 years ago leads me to believe things will remain mostly stable or drop slightly there compared to TN, AZ, etc, which could see pretty stark declines.

I could very well be 100% wrong though.

CE_gonna_CE posted...

Anyone who claims to know what the market will do is most likely wrong, tbh.

That said, post #5 hit it on the head. Trying to time the market will never work, so stick with something you can afford and would be ok being stuck in if prices dip and you find yourself unable to sell.

I personally believe that bubbles in certain areas that are ridiculous and completely overinflated will pop at some point here (Nashville TN, for one), but that simply might not be the case everywhere. To put it in perspective, only recently did a townhome of mine in IL get back above what I paid for it in 2005. Its gone up tremendously as of recent, sure, but knowing its not valued much more than it was 17 years ago leads me to believe things will remain mostly stable or drop slightly there compared to TN, AZ, etc, which could see pretty stark declines.

I could very well be 100% wrong though.

You could but wrong but you gave a lot of good info here. I think your spot on to be honest. I was lucky and was able to get money out of my old house in Idaho right before this all happened and moved. Unfortunately for medical reasons but the market was crazy in California. Houses were going on the market for 650k and closing at 700k. And it only got worse I think. Houses getting 10-20 offers at a time. Thats crazy and not sustainable.

The other big thing right now TC is interest rates. If I remember right, the Fed just raised them. So if you buy now you will likely have a higher cost with that per month :( To the point of you might be spending 500-1000 more a month cause of the interest

But like the above poster said, it highly depends on area.

I appreciate all the input. I think I'll start looking but with a "the houses need to impress me" mindset. I have time.

Ive been hesitant to actively look/buy now too because of the interest rates, but the more I think about it maybe it might be good in a way because the competition will be less. I dont have any urgent reason or need to buy asap, but I am really ready for my own space.