Is it really a good time to buy right now?

Question

Yes I know seasoned experts will say that time in the market matters more than timing the market, but is right now really the right time to buy? The fed is due to bump up interest rates this year, yet demand is still high, therefore keeping prices highly elevated. Here in California at least, buyers are waiving off their contingencies left and right trying to compete with other buyers, never mind the all cash buyers. Not to mention rampant inflation and whole myriad of other issues going on right now. There has to be a strong case right now for it not being the right time to buy right? I would love to hear your opinions

Alecia Loveless · Answer

@Ignacio Linares I’m still looking to buy. I’ve got an appointment to see a property this afternoon and my realtor has a 3-unit coming on shortly and two fixer uppers being listed soon too that depending on what they are I might consider one as a BRRRR or a flipper. Likely I’ll be stretched too thin to do all four unfortunately.

If you can lock in your rate and have enough cash flow it shouldn’t matter what the market is doing unless you expect rents to drop in your area. I personally believe higher mortgage rates will further increase rental demands. Now should be as good a time as any to buy property.

Theresa Harris · Answer

If the numbers work, buy now.  Do some calculations on interest rates and see what difference 1% can make on your payments and your ability to borrow.  While we don't know where the market will be in a 1 year or 5 years, if the prices go down a bit, there is nothing that says you have to sell, you can hold and wait it out. Look at 2009(?) when the markets in the US crashed.

I bought a few places about 7 years ago. the market was picking up in that area, so one place I bought, I thought I'd buy it now and maybe sell it in a few years and buy a slightly better or bigger place...well that didn't happen because prices kept going up.  Now there is no way I'd be able to afford a home there and I am lucky that I bought when I did.

Taylor Dasch · Answer

Theres never a wrong time to buy IMO - Once I have the funds, I purchase another property. It is the deal that matters the most. If I can continue to buy properties, sometimes I will buy when it is a "bad" time. As long as it cash flows and will continue to cash flow its a good time to buy it in my opinion.