Real Estate advice - buy now or wait?

It's not worth listening to anyone's advice on Reddit about what the housing market is going to do in the next day/week/year/decade. You don't know if any of us are qualified to be predicting housing market changes (whether we say we're an economics PhD or a 30-year real estate investor multi-millionaire.. because everyone can lie on the internet).

What you should consider is whether or not continuing to lease or buying now is right for you, today. Generally speaking, if you're going to live somewhere for at least 5+ years, buying tends to be a good option. However, a lot of people live in cheap apartments then upgrade to a much nicer house, and in that case it's only worth doing (from a financial standpoint) if you're planning to stay in the house much longer (and depending on the price difference, it may not be worth buying at all).

For a condo, make sure to take into account all expenses when you're looking. Not only are you paying for the cost of the house, you're also paying interest and property tax, so you want to look at your total monthly payment (including PMI, if you're not putting down at least 20% for the down payment). Then add on the HOA fees and any other expenses you might need to pay (such as utilities that you might not be paying in an apartment). Some places include water/sewer/trash/electric/gas in the cost to rent/own, others don't, so make sure you're comparing apples to apples when it comes to the price.

Also note that increased commute times mean less free time, less happiness, and less money, so factor that in as well. And don't forget to check travel times to other places that you frequent (hobbies, grocery stores, a gym, etc.) and see if that makes a difference to you in terms of cost or how satisfied you are with a particular location.

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In general, I'd avoid dipping into retirement funds now, as you can leave those in more aggressive investments for the long term and potentially get a high return on those investments. I'd at least wait until you have enough for a 20% down payment without dipping into retirement funds, that way you avoid PMI and you avoid withdrawing the money you want to have ready for when you want to retire (especially if you ever plan to retire early).

I don't think prices are going down any time soon, but at the same time if you're already in a nicer/more desirable location, then who knows if other locations will get nicer and therefore your location isn't as competitive so the prices stagnate or drop, or maybe crime goes up and the prices drop, or.. who knows what else. But if you wait a year it's unlikely that prices will change some ridiculous amount. Pay attention to the market throughout the year, and if the prices start to creep up, you can always try to jump in before you get priced out.

*crys in boston prices*

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but for real, if your landlord is willing to go month to month, do that. It lets you watch the market, I've heard it's going to become unstable. You don't *really* want to take a loan out against your 401K, it's just not a wise financial move.

In addition to other reasons for avoiding the 401k loan, also consider what happens if you unexpectedly change jobs. Many 401k plans require a loan to be repaid either immediately or very quickly in the event of a job change, or the loan balance will be treated as an early distribution. If this happened you would owe a 10% penalty and income tax on any balance you could not repay.

Buy a house at a time when you are ready to do so and when you feel ready. People will always say it’s the right time or that it’s the wrong time but all that matters is when it is the right time for you. Save your down payment, research the area where you want to live, and when the time is right for you make a move.

My opinion is that if you plan to be somewhere for at least three or more years and you have the money to make your down payment comfortably, it is never a bad time to start building equity in a home. The first homes to slow down in a poor market are the expensive ones. Properties in the $180-250 range are in much higher demand and are more resilient to market changes. I don’t personally see the market taking a significant downturn in the immediate future, but nobody can predict that. As a realtor, I’m not a financial advisor, but I wouldn’t necessarily recommend taking a loan out for your down payment. But, if you’re considering it, at least you’ll be paying yourself interest on a loan from your 401k, which is better than giving more of your money to the bank. They’ll get plenty of that during the life of your loan. If you’re intent on settling down in Charlotte, pinch your pennies, save up a good down payment, and stop watching the prices go up each quarter and start building equity.

I do mortgages here in the Charlotte area. I can only tell you what I see. It seems that nothing is slowing down. At all. Appraisals are coming in high (showing values are continuing to increase). I've had multiple borrowers miss out on a house because they didn't act immediately...and tried to negotiate the price.

So it seems like buying now is the right thing to do...this summer things will heat up more.

Of course no one knows for certain. We could be on the verge of a market collapse for all anyone knows!

Anyone who might give you any conclusive answer, including professional economists are lying.

We don't have enough information to evaluate all the variables, or your buying window.

If you wanted to speculate based on one single variable that will have a strong influence on housing prices in the near future, consider speculating on the 2020 election.