Good afternoon —
Trying to buy a house right now can be an exercise in frustration for consumers, real estate agents and lenders. Making offers on multiple houses that fly off the market with lightning speed is enough to discourage even veteran agents, let alone homebuyers.
At the same time, rates are so low, and everyone who is anyone seems to be buying a house — either for shelter or as an investment. What if you miss the opportunity of a lifetime to buy at 3%?
We asked our lead analyst, Logan Mohtashami, to weigh in on the question consumers are asking agents, lenders, family members in the business and random internet strangers: Is it smart to buy a house in a super-hot market?
Mohtashami looks at the question from both a macro view and from a more personal lens.
On the one hand, demographics point to heightened demand for the next four years as millennials hit peak home-buying age. If you're waiting for prices to cool down, that's not likely to happen in the short term. Higher mortgage rates would cool off demand (and therefore home prices), but higher rates could also offset any potential benefit of lower home prices. Lower demand could mean fewer people are able to afford to buy.
On the other hand, no one wants to buy at the top.
"Americans buy when they're ready to own that debt. If 2020-2021 hasn't convinced you of that, then you need to look in the mirror and ask why Americans are buying homes. A home is a place to raise your family in a neighborhood where you send your kids to school and just live life. The obsession over home prices, and how good of an investment it might be, is kind of missing the point."
Read the whole article here.
Until tomorrow —
Sarah Wheeler
HousingWire Editor in Chief
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