So you want to wait until the market cools to buy a house. My advice, don’t do it.
The tricky thing about waiting until the market cools is right now, we are in an inventory shortage, rates are incredibly low. That means if you look at a normal market, like September of 2018, the average home sale was $262,000. Right now, the average home price is $320,000. The tricky thing about a normal market is rates are going to be higher. While the prices of homes may not continue to escalate like they have been, they’re definitely not likely to go down with any great degree. The average home price in September of 2018 in a normal market was $262,000. At that $262,000 sales price with mortgage rates at 4.63%. Your payment per month would be $1,361, on that house. If you buy that $320,000 house now in September of 2021, at an average interest rate of around 3%. Your payment per month is only going to be $1,350. That’s $11 cheaper than that $262,000 house was three years ago. So remember, if you wait until that market cools, that $320,000 house might still be $320,000 And you might not have to go over but your payment by looking at those 2018 rates is going to be $1,600 a month. And that seems like a difference worth sticking it out for a while I don’t have a crystal ball and I don’t think anyone does. One thing I do know is the market is still great right now to buy a home. If you’re thinking of buying or selling I’d love to talk to you. Give me a call, shoot me a message, and let’s get together and make a plan.