Is 2022 a good time to buy a house? Will be 2023 be better? Buy now or wait? 

Many people try to right-time their home or investment property purchase. They want the lowest rates, the lowest prices, and, ideally, an all-out buyer’s market.

Sadly, those conditions rarely converge. And if you’re waiting for that picture-perfect time? You might just be waiting forever.

“I get this question all the time,” Simental said on The Mortgage Reports Podcast.

Though today’s rising home prices and higher mortgage rates might be discouraging to many, Simental says it is still a good time to buy — at least for the right buyers.

“I think [late] 2022 is going to be a better market because interest rates have gone up,” he said. “A lot of individuals will get priced out of certain markets, meaning that they won’t be able to afford what they were preapproved for six months ago.”

Generally speaking, real estate is considered a good hedge in inflationary times, helping protect your money as inflation continues to rise.

This will ultimately cut down on the competition and make things a little easier on house-hunting homebuyers.

“Things are going to taper off and slow down,” Simental said. “It’s not going to crash. It’s not going to dip. It’s just going to slow down, and we’re not going to see those double-digit appreciation numbers that everybody has been used to seeing.”

On top of this, there’s also inflation to consider, which is now at its highest point since the early ‘80s. Generally speaking, real estate is considered a good hedge in inflationary times, helping protect your money — and even grow it — as inflation continues to rise.

As Simental explains, “Real estate is a safe bet against inflation.”

Is buying a house in 2022 the right decision for you?

Though these are all good reasons to buy a home, Simental said it’s important to use your personal situation as the driver — not the market — when making a decision.

“You have to take a look at your specific situation,” Simental said in the podcast. Ask yourself:

• Where are you at in life?
• Are you looking to settle down?
• Are you looking to plant roots?
• Do you see yourself living there in that city for five, 10, 15 years?

If so, and your place in life fits with homeownership, it’s probably time to start the house hunt. You should also look at your financial picture.

Simental encouraged listeners to ask themself:

• Do you have stable employment?
• Are you salaried?
• Do you have savings?
• Do you have a 401k that you could tap into?
• Do you have stocks or bonds that you can tap into?
• Do you have a Bitcoin that you can cash out?

If you answered yes to any of those questions, then Simental says it’s definitely a good time to buy — especially if you’d otherwise spend those funds on rent (someone else’s mortgage/equity) or invest it in lower-return assets.

“If you can afford it, you should get into the market because you will have appreciation, and you will have those tax benefits,” Simental said.

Don’t time the market

At the end of the day, Simental said it’s not a matter of finding the ultimate, perfect time to buy a house. It’s about settling on the right time to buy for you specifically.

And when you are ready? The sooner you can buy in, the better.

“You never, ever try to time the market — it’s always best spending time in the market,” Simental said.

“We know that historically, real estate has appreciated. If we look at it over the last 100 years, it has gone up. So take advantage of being a homeowner,” he continued.

“If you answered yes to all those questions, you have your finances in order, you have your credit in order, and you have your downpayment and assets in order, then yes, it is absolutely a good time to buy in 2022 and even in 2023.”

Want to buy a house in 2022?

If you’re considering buying a house in 2022 or 2023, reach out to a mortgage expert in your area. They can help you determine if it’s the right time and point you toward the best mortgage options for your purchase.

Source: https://themortgagereports.com/