Should You Wait Out The Current Housing Market? The Pros and The Cons

The current housing market is on fire, but should you wait it out or jump into the mix? After all, at the end of 2021 the number of unsold homes on the market hit an all-time low nationwide. There are still more buyers than sellers out there, and that has homes going fast.  

There’s a lot of pressure on buyers with fewer homes to choose from and more competition. Of course, there are both pros and cons if you’re thinking about joining the red-hot housing market. Here are a few things to consider: 

Pros:

• Different markets

It could depend on where you’re looking at buying. There are lots of real estate submarkets, and some are hotter than others right now. They also change on a weekly or monthly basis. 

• Price increase gamble 

While homes have been increasing in price lately, it’s likely they won’t be increasing quite as rapidly this year as what we saw in 2021. That could mean 2022 is a better decision for some buyers. Waiting too long for a better price, though, may not be to your advantage.

• High rent prices 

Buying could also mean no longer having to rent. Rent prices are high, so buying means not having to worry about those rent prices going even higher in the future.

Cons:

Of course, there are also some cons.

• Poor decisions

Some real estate experts say they’re seeing people make poor decisions because they feel like they don’t have time to consider everything fully. It’s sometimes tough to be patient, but you also don’t want to end up overpaying for a property you don’t love. 

• Higher interest rates

While home prices may potentially not rise as quickly in 2022, interest rates are on the rise. That means homebuyers will likely pay more in interest for the same home the longer they wait.