Should I wait to buy a house?

Colorado springs real estate market

This question has been googled SEVERAL times and I wanna help you have confidence in your question,“should I wait to buy a house?”

In short, it depends on your goals. So let’s break this down! 

Should you wait? If you have the money to purchase a home, you should do it.

Quick overview on what we’ll cover!

1. Low interest rates

2. Housing market over a long-period of time always rises

3. Inflation 

In 2020-2021 we have seen a massive increase in the housing market across the United States and many people think the housing market is a bubble and will crash.

Click here for a free resource that explains the market more in depth and why we ARE NOT in a bubble!

Though prices are on the rise, interest rates have been at an all time low. Those of you who know what interest rates are, just skip to the next paragraph. Those of you who have no idea about the home buying process, you’re not alone and let’s walk through this.

When the bank lends you money to be able to buy a house, there’s what’s called an interest rate that goes with the loan. This rate is different based on the house, the type of loan, and the client’s unique financials. But, this is basically how banks make money. If they were giving out “free” money all day and never made money, they wouldn’t have money to give haha. Make sense?

So when you get a mortgage (a home loan), you have an interest rate that is calculated into your monthly payment. A lower interest rate leads to a lower monthly payment. Think of it like finding the right coupon to use at the store. Instead of buying the diapers at Costco for $104.99, now you get them for $88.99 because of the discount you’re using (can you tell I’m a mom with diaper examples lol?)

Interest rates can save or cost you a lot depending on the current state of the economy. And right NOW in 2021, the interest rates are still low. 

When you get your loan, you can lock this rate in for the life of your loan! That’s a BIG deal and can save you LOTS of money in the end. Think of it like if you use the Costco coupon today for your diapers, you will always be able to buy the diapers at $88.99 instead of $104.99 for the next 15 years!! Wow, that little bit over time adds up! Same thing with your home. 

The second reason it’s a good idea to buy a home now is that yes, prices have gone up, but over time in our country, the housing market is always on the rise over a long period of time. Real estate is a long-term game. It’s an investment and when you hold property, the value goes up and up over time! In 10 years from now…a house that’s $400,000 today might be $600,000+. Choosing to get a home now could build you wealth in the future.

The third reason it’s a great idea to buy a home is because of something called inflation. When you were growing up, did you ever get something really unique? I remember getting a purse with my initial on it and I thought I was the COOLEST person ever. All of a sudden my friends had the same purse and I started noticing it EVERYWHERE! 

Basically, my purse was no longer as valuable to me because there were so many initial purses on the rise. Okay, maybe a terrible example but that’s what happens with money. The dollar itself loses it’s value when more money is printed.

In case you didn’t know, our country has printed A LOT of money in the past two years which means inflation is taking place. If I have $10 just sitting in my bank account, that $10 really might only be worth $3 in 5 years and so it actually LOSES value. Crazy, right?!

BUT when you invest that money into a home for your residence or an investment property, the money is now not impacted by inflation. Why? Because the housing market goes up in value! If I put that $10 into a house instead of my bank just sitting there, that money in 5 years will no longer be worth $10 but now I could sell my house for $50 and that money I put in not only do I get back, but it makes me more money.

See how amazing real estate is? 

So my friend, to answer your question. If you have the ability to qualify for a loan and you can afford a home…then I highly recommend doing it! If you aren’t sure if you qualify, that’s where lenders come into play. You can give one a call and simply just ask questions in order to understand your finances and what you can actually do!

I’m also here to answer your questions, truly! Text me or give me a call anytime and I would love to help you figure out if now is or isn’t the right time for you to buy. The truth is, some people are in unique situations and you might need to hold off. I’d love to help guide you through that decision! Call or text me 719.985.1593!

If you live or want to live near Colorado Springs area I’d love to help you as your RealtorĀ® and if you live out of state and need an agent to take excellent care of you, I’m connected to a network of top producing agents that will care for you every step of the way and I’d love to connect you with one of them! Just reach out to me.

Thanks so much for reading and I’d love to know your thoughts and questions about the real estate market in 2021. If you found this helpful, share the post to help educate others about our current housing market!

Stay positive!

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