Is It Worth It to Buy a Home in 2022?
As you watch this video, the money in your pocket is losing value. Wouldn’t it be great if you could flip the polarity on that downward curve into an upward curve? So you’re riding on top of the inflation wave instead of trying to swim against it?
If you’re moving any time soon, you’re probably in a great position to do just that. Let me show you how.
If you saw my last video about whether it's a good time to sell your home, you know that home prices are going up in 2022. And at the same time, we’re seeing inflation and mortgage rates do the same thing. So, wait a second, with everything getting more expensive and money losing its value to inflation, you want me to believe it’s a good time to buy a house?
Yeah. Actually, if you shift your perspective to look toward the future, you can see that’s why it’s a good time to buy a house.
Unlike the $20 bill you’ve put through the washing machine 17 times, houses are GAINING value right now. Paper money is going down, houses are going up. So whichever one you have your equity in determines which one of those graph lines you’re riding.
Real estate is one of the time-honored inflation hedges. Unlike the numbers in your bank account, it’s a tangible asset, so it will get more valuable over time.
Just to confirm this, we can look and see that home values are performing better than the inflation rate; there’s only been a couple times in past decades where that wasn’t the case, and those are very mild instances. So if we’re talking about ways to protect yourself from inflation, real estate is a pretty safe bet.
That’s awesome from an investment perspective, but now let’s look at this from just a “I need a place to live” perspective.
As far as regular home payments go, rent is going to continue to get more expensive, just like home purchase prices. But, a fixed-rate mortgage will stay the same. So knowing that both of these things are appreciating, by buying instead of renting, you're locking in your payments as what they are today, instead of having to pay more when those prices go up.
Now keep in mind, property taxes and other expenses are still gonna go up a little. But that’s a completely different world from rent prices – it’s just something to be aware of.
Now, whether buying a home is the right move for you depends on your current situation as far as lifestyle, finances, and everything else, but if you’re in a position where you COULD buy, and you continue to rent instead, you’re just signing up to pay those price hikes year after year rather than letting them work for you.
The big question I hear a lot lately, is: When is the market going to come back down?
Not for about four years.
This is of course just a prediction; nobody can tell the future, but it’s what every expert is saying, and I haven’t seen any evidence of them being wrong. It’s probably going to take until 2026 for this market to START to turn around. I know, that sucks, but that’s what we’re working with.
So if you know you’re moving less than 5 years from now, now is the best time. Buying a home is going to cost more than it does now, even before the end of this year. So if you’re gonna buy a house soon, I suggest you do it, lock in your payments, and let it appreciate for you.
Thank you so much and if you’ve got any questions or you wanna talk about your personal situation and what all this means for you, give me a call, I’m always happy to help.