Is winter here for the economy? Here’s why you still might buy.
If winter is coming, should people be buying real estate? Our opinion is that we are in the middle of “winter”, and the first “blizzard” of rising interest rates and a declining economy has already hit. What we know is that just because it’s winter doesn’t mean it’s all doom and gloom. There will be nicer parts of the winter, and we’re already seeing a little bit of recovery. Through this up and down, there are three questions you should ask yourself to determine if now is the right time for you to be buying real estate:
1. Can I afford the home? We do this kind of analysis for our clients all of the time. Can you afford the down payment, closing costs, and monthly payments? If the answer to all three questions is “yes,” then you should buy the home. Consider that if you continue to rent, your payments are likely to go up by at least 3% to 5% due to inflation. If you buy, you’ll be locking in your payments for the foreseeable future.
2. How long will I own the home? If you’re thinking about purchasing real estate, you should be looking at a five- to seven-year investment, or possibly even longer. If you’re looking long term, real estate will continue to be a safe investment. We like to say: “Buy real estate and wait, don’t wait to buy real estate.”
3. Am I secure in my career? This goes back to the question of affordability. You want to ensure that you will continue to be employable in your industry. If you love the house and know you’re going to continue to be able to afford the payment, then now is the time to buy.
Finally, something to consider as our economy continues to look like a winter setting is that real estate tends to do fairly well in recessionary times. A real estate property holds its value through inflation and recession, so it remains a safe investment for troubling times.
If you have any questions about whether or not the time is right for you to buy or sell, or if you have questions about real estate in general, that’s what we’re here for. Give us a call or send an email. We love strategizing with our clients and look forward to catching up.
