Here’s why it doesn’t make sense for buyers to wait for a market crash.
A lot of buyers have reasons they don’t want to purchase a home right now. They think inflation is too high, homes are too expensive, the market will crash soon, and any other reason you can imagine. However, is it a good idea for buyers to sit out of the market? Let’s talk about it.
For the sake of argument, let’s take a look at a typical home. A home that’s worth $400,000 today would add up to a monthly payment of $1,200 with our interest rates. That seems like a small number, but it’s because our current interest rates are historically low.
“Don’t wait for interest rates to increase.”
Now, let’s say the market does end up crashing. Maybe that $400,000 home ends up listing at $350,000. That’s a great deal for you, right? Unfortunately, it’s not as good as it seems. When the market crashes, interest rates tend to go up, and because they are currently so low, there’s a lot of room for them to increase. If that happens, your monthly payment could end up being the same $1,200 it was before, or possibly even higher.
So ask yourself: Is it worth the wait? If you don’t want to wait for our interest rates to increase, please give me a call. I’d be more than happy to share more tips on timing the market with you.