“Should I buy a house now?” Yes! There is never a “good” time or “bad” time to buy a house. If you are weighing the pro/con list of renting vs buying, you will find that buying is the better option. But really, should I buy a house?
What The Rental Market Looks Like
The rental market is insane right now! The reason being, a lot of sellers are choosing to rent instead of buy something else. There are a variety of reasons for it, one being they can no longer qualify due to loss of job or credit.
The influx of renters because of this is causing the rental properties to fly off the shelf!
Rental prices here in Las Vegas are going up or at least maintaining their value through this craziness. I don’t see it decreasing because there is about to be more renters coming into the market after the new year.
Should I Buy A House?
If you’re worried about your job, buy a house. I know that seems strange to say but it’s easier for a landlord to evict you, than it is for the bank to foreclose on you.
I recently wrote an article talking about the pros and cons of home ownership vs. renting.
Sometimes it takes the bank a full year to evict and if you really need to, you could live rent free for a bit. Your credit will tank and, of course, I don’t recommend it unless it is the only option – which is often never the case, but it happens to some people.
You are buying an asset! As the renter, you cannot sell the home to recoup or make money if you are tight on cash. If you buy a house now, and then next spring lose your job, you can sell the home and at least break even.
The market may be volatile but with such low inventory you will at least get your down payment back and survive another year!
I get that prices are really high right now, and I don’t foresee them tanking anytime soon in Las Vegas. I think they may soften and sellers will need to concede more than prior to COVID but over all price won’t decrease much.
Think of it this way, back in early 2020 we could list a property for 300K and sell it for that price without really any concessions because we had 6 other offers waiting to buy the home.
Next Spring 2021, I think that same house will list for 300k but we will only have 1 offer to deal with and if they ask for a 7k concession, we will most likely give it to them making the final price 293k. Get the point?
For sellers, I would sell right now while inventory is at an all time low and for buyers, I would be really aggressive with the offer to ensure you stand out in a multiple offer situation.
But Kit, I Don’t Think I Can Afford a House
Have you even talked with a lender? The biggest fallacy is that you NEED 20% down to buy a house. YOU DON’T NEED 20% DOWN. If you are asking yourself “should I buy a house”, but think a downpayment might stop you, think again!
There are so many programs now to incentivize buying homes that you don’t know what you qualify for until you ask. Call someone and get pre-approved and you may be amazed at the wizardry of lending!
It’s okay if this isn’t your forever home. You will never find that “perfect” house so stop trying to have perfect and focus on how you can make that house a HOME for you.
You will need to compromise a bit in today’s market because there just isn’t enough inventory to choose from (sellers, call me for Christ’s sake so we can have more inventory!).
With my construction connections, we can find you a home and then remodel it and make it your home! Not all agents can say that 😉
What Are You Waiting For?
Seriously, what are you waiting for? COVID isn’t going anywhere because the government isn’t going to give up control (hehe someone is triggered right now).
The market isn’t going to drop anytime soon. And boomers are hanging onto their properties longer than previous generations so we are at a crossroads.
Sure you can wait until things soften, but if the government ban of foreclosures and evictions goes passed December, you will still be in the same spot.
Don’t let the government tell you what you should do! Go buy that house and hire a realtor like me who will get you the best price and terms possible!
Seller, stop being afraid of COVID and sell your home for the most it possibly can sell for! Buyers are knocking on my door and I want more to show them!
So if you are still asking yourself “should I buy a house”, I hope this article helps you and if you have additional questions, please feel free to contact me! I am happy to help!