You should not buy a house this year. That’s correct, if you are not ready, if you have not spoken with a realtor, gotten your finances together including your credit and income-to-debt ratio, you should not purchase a home. However, if you are ready, really ready, there’s no reason why you should not buy in 2024. There are good reasons why this may not be the best year to buy, but it may not be as bad as others may be telling you.
Real estate is not an ideal investment for some right now because home values are higher than ever, interest rates are also high as are taxes and insurance premiums. Simply put, you’re going to pay a lot more for a house than you would have even five years ago. In some cases, homes and the monthly cost of owning them have doubled and that’s why a lot of people feel you should wait before buying.
Why You Should Buy A House In 2024
The problem with waiting is that you cannot know what the market is going to do down the road. A property may go up or down in value but most of them will go up over a period of time. If you are looking to hold a property long-term, you need to consider buying now for several reasons.
- Interest rates: Yes, interest rates are high, but that does give you an advantage. If you can afford monthly payments with inflated interest rates, you are going to have an advantage over other buyers. Even if an asking price is lowered by $20,000 that asking price will still be too high when combined with the rates of the loan. If you can make things financially work now, take advantage of them.
- Availability: Because buyers are struggling right now inventory is up higher than it has been in years. Prices are starting to go down a little and homeowners who have listed their homes are seeing their properties sit for months without a legitimate offer.
- Information: As a buyer, you have access to far more information about a property than you would have in the past. You know what has done to the property since it was built, if it was done correctly and with permits, if it’s been sold, for how much, what other homes in that area have done and more. All of this helps you to become more confident with your purchase.
- Income: Everyone has a different battle on their hands when it comes to income. However, one advantage most people have that has not been there in the past has been income and the options that are available. You can find work faster than ever, and it pays reasonable. It may not be in your desired field, but if you need to make an extra $200 a week to cover your bills, you can.
- Flexibility in property: There are also more options with properties now as far as renting them or even using a room to rent out with AirBnb. This eliminates having long-term renters who live with you and you can limit how many days a week your property is available. Imagine being able to make your extra $200 a week by renting out a room in your house for a weekend?
- AirBnb and renting: Again, renting out a property or using AirBnb are amazing options and it’s easier than ever to do both. This gives you a major advantage with any property because you have the ability to get income from it, either to cover your bills or as a profit.
- Value is staying strong: While interest rates are high and homes aren’t selling like before, values are staying up. A house that was worth $500,000 last year will probably not sell for that price or near it right now, but it’s maintained its value which is a great sign.
- If rates drop, prices go up: Rates are up right now yes, but if they go down, are you going to be able to get the property you want? Everyone who wants to buy a house has to wait for rates to go down. If you want a specific property, waiting may not be the smartest move.
- Upgrades are needed: A large percentage of homes that are for sale or will be for sale in the next five years were built before 1990. That means they are over 30 years old and require new roofs, windows, kitchens, bathrooms and other work. Because of that, you want to jump on a property that is either ready to move into or needs a lot of work but that means it’s better for you. Again, this is something that is different for each person and property.
If you are not sure where to begin with buying a home, start with your budget. That is going to tell you where and what you have an option to buy and how to get going on your search. Speaking with a realtor is also very smart and it will give you a great deal of information, not only about real estate but also about the area.
