Is Now A Good Time To Buy A Home?
So, you want to know, is now a good time to buy a house? Lets dive in.
Spring buying is happening!!! And let me tell you, it is a mad house out in these streets lol. If you are in the market to buy a home (because if you can why not?! rent has risen ) right now is the time. But it’s causing some frustration at this point for home buyers, as bidding wars are already picking up again. Inventory is low and multiple offers are on the rise again. This makes the competition steep, at this point you have to come in fast and with your best offer in order to be considered.
A HOUSING SHORTAGE
In America we have a housing shortage. Missouri’s inventory change is down 8% month over month with the national average being 6.1%. Freddie Mac considers us to have a housing shortage of… -3.8 million, yes, you read that correctly, I said MILLION! That’s not all, sites like Realtor. com suggests that the housing shortage is upwards of -5.8 million. Those are some huge numbers.
As you may notice people are living longer, healthier lives. Gone are the days where you get to a certain age and your kiddos either move you into their home or place you into a retirement facility. Older people are staying in there homes longer, single family homes aren’t being built as rapid speed as needed ( “14 straight years below 52 year average”) and thus apartment buildings are going up everywhere. But guess what? Renting doesn’t build any kind of wealth, there is no equity in renting.
Speaking of equity, Equity has risen, “Potential growth in household wealth over the next 5 years based solely on increased home equity if you purchase a $400K home in January 2023 is $54,296”. Could you imagine having $54,000, that’s an extra $10,859.20 each year.
Median asking rent is $1300. For some people that is nothing but for others it is not affordable. If it is possible to make a home purchase it should be strongly considered, as home ownership in real estate is the fastest way to generate wealth.
A QUICK SUMMARY
Okay, lets sum this up now. If you’re a seller, life is pretty good in this moment. You’re receiving multiple offers and probably selling it well over asking, with all of your requested terms. Some homes are even being sold AS-Is.
If you’re a buyer, you’ll need to have a little patience, flexibility, grit and a great realtor (you like how I threw that in there lol) in this market. It’s not an easy one, but people are still getting offers accepted every day. With a plan, the right guidance, information and determination it’s possible.
All statistics are from the National Association of Realtors. I cannot make this stuff up you guys.