Is now a good time to buy a home is one of the most often asked questions. It’s understandable, especially when you look at what the housing market has done over the past 18 months.

I think the actual question has less to do with the timing aspect and more to do with the financial piece - if home prices are going to fall I’d be better off waiting to buy! The honest answer is the right time for someone to buy a house is when it’s the right time for someone to buy a house, and that will be different for everyone because the main reason people buy homes has nothing to do with the financial side of the equation.

Those non-financial reasons are what we are going to focus on in this blog post. Continue reading below, or watch the following video, to learn more;

Over the past couple of months, we’ve had a few potential homebuyers let us know that they are going to wait until the market corrects before buying a home. Considering how crazy the local real estate market has been I completely understand where they are coming from, but honestly sometimes wonder if they know something I don’t!

I have often said, and still firmly believe, that the right time to buy a home is when it’s the right time to buy a home.

No, it’s not double-speak, so let me explain.

Trying to time the real estate market in terms of pricing is a lot like trying to perfectly time the stock market…..which usually doesn’t work out too well. Truth is, the vast majority of real estate transactions take place around life events, not market movements. Getting married, growing family, kids head off to college, divorce, job relocation, etc.

Last year, as the market really started taking off, we were working with Ben and Andrea. They are a young couple that was looking to buy their first home. We were scheduled to go out and look at a few homes when they called to cancel. Several friends and coworkers had told them it wasn’t a good time to buy and suggested they wait it out. As such, they decided to sign a lease for another year.

In talking to them this past month let’s just say they weren’t too happy with the decision to wait. They can no longer afford the type of home they were looking at last year and are facing a rent increase if they choose to stay where they are for another year. A very difficult situation and one in which they are not alone in making.

The Non-Financial Reasons to Buy

While there is no denying there are financial benefits to owning a home, the feeling of gratitude, pride, security, and comfort we get from owning a home are often overlooked. Considering what we have all been through over the past 18 months, those emotions are stronger than ever. The definition of home has changed.

According to the 2021 State of the American Homeowner report by Unison:

“Last year, staying at home became a necessity and that caused many homeowners to have a renewed gratitude for the roof over their head”

We’ve spent more time at home over the past 18 months working, eating, schooling, exercising, and more than at any other time in recent history. As such, home became more than just a shelter and became a place that protected us on a whole new level. The same study from Unison noted above also notes:

• 91% of homeowners say they feel secure, stable, or successful owning a home

• 64% of American homeowners say living through the pandemic has made their home more important to them than ever

• 83% of homeowners say their home kept them safe during the pandemic

It’s no surprise then that the study also revealed that homeowners have become more emotionally attached to their homes:

These emotional reasons for owning a home have increased demand amongst buyers while increasing the emotional attachment to home for sellers, resulting in fewer homes for sale than we traditionally see.

JD Esajian, President of CT Homes, LLC, said:

“Aside from the financial factors, there are several social benefits of homeownership and stable housing to consider. It has long been thought that buying a home contributes to a sense of accomplishment. Still, most individuals fail to realize that homeownership can benefit your mental health and the community around you.”

Mark Fleming, Chief Economist at First American, noted that lifestyle has become an important aspect of homeownership as well:

“Buying a home is not just a financial decision. It’s also a lifestyle decision.”

Bottom Line

While the financial aspect of buying a home is important, it isn’t the only factor to consider. If you’ve been thinking of buying a home, but aren’t sure if this is the best time for you, let’s schedule a call to discuss your specific situation in more detail.