When to buy

Question

I was just curious is there ever a right time to buy a house like a lot of people around me say wait till the market goes down cause it’s high but like it always seems like it’s gonna keep going up you know I know there’s sometimes the moments where it goes down a little bit, but it’s always gonna go up no?

Megan McClung · Answer

@Jaime Zarate i've sold real estate in columbus, oh and detroit, mi. so two super different markets. and in situations where we're trying to get into an asset class that is just getting eaten up by buyer demand (meaning bidding wars, sellers unwilling to negotiate, etc.). sometimes it's effective to start up the search again during the slow months of real estate when there are less buyers to compete with. slowest months are september through december. then buyers start coming back out in january. but january through march is the second slowest time of year. so if you're getting outbid on the properties you want, you might score better deals in q4 and q1.

Marcus Auerbach · Answer

You can google historic home prices (for example case schiller index) if you want to know. The reason home prices go up, because the value of the dollar goes down with inflation. You could have bought a brand new house in 1960 for $15,000. Back then they financed that over 30 years.

Most first time home buyers are stuck in that holding pattern. The irony is, if the housing market would go soft, they would be to scared to buy, because "prices are falling"

But there is that thing called supply and demand and the US has a chronic housing shortage, especially in the Midwest, and it will probably take a decade to catch up. The issue is so big, that it became a topic in the last presidential election

Wale Lawal · Answer

@Jaime Zarate

Great question—and you're definitely not alone in wondering this. The truth is, there’s rarely a “perfect” time to buy a house that everyone agrees on. The market can dip, but over time, real estate generally appreciates. So instead of timing the market, focus on whether it's the right time for you—meaning you’re financially ready, you’ve found a solid deal, and you can hold the property long enough to ride out any short-term dips. If the numbers make sense now (e.g. monthly payments, rental income if applicable), that’s more important than trying to predict a crash that may or may not come.

Good luck!

Jaime Zarate · Answer

Well I would buy a house for the investment/wealth aspect like renting it out or house hacking is still okay to buy house then?

Nikki Jefferson · Answer

@Jaime Zarate house hacking is always a great idea. As for 'when is a good time to buy' the answer is always yesterday! A week ago! A year ago! There's never a perfect time but the best time to buy is when you know what is going on. You know the numbers and the terms right now and everything else is uncertain and always changing.

Drew Sygit · Answer

@Jaime Zarate how well can YOU time the stock market?

So, how well will YOU be able to time the real estate market?

Investors do NOT have to buy, but they should always be looking!

Try to take advantage of properties on the market for 90+ days, probates, divorces, etc.

Jared Smith · Answer

@Jaime Zarate, welcome to the perpetual conundrum of real estate. If I had to guess, I would say your people around you are not investors themselves or their perspective would likely be different. The reality is that you can find good, solid, base-hit deals in pretty much any market. If I told you you can get into a deal and in 5-7 years the appreciation will likely exceed what you put down even at 30%, not including equity pay down from the resident and potential passive income on top. Would you do that deal today? Because I have dozens of those.

Surround yourself with real estate go-getters and you will find deals!

Tj Floros · Answer

Hey Jamie!

Everyone has given some sound advice. I would say that it very hard to time the market and just to buy when you are ready. When to buy? when it make sense to you. If you are looking to buy a house or a multi unit it depends on a number of things: your knowledge on the subject, do you have money saved for down payment, closing cost?, are you ready for a big life decision, do you have a team in place? IE realtor/ lender.

If you are ready then I would suggest connecting with a realtor, especially one who understanding investing, and a lender to start the process. That does not mean you have to buy, but talking with a realtor or lender to bounce ideas off of and what your goal is can get the process going. If you are looking to invest or house hack, BP is a great place to start along with books or podcast.

I'm glad to recommend some books, podcast or industry referrals if you need any.

Alecia Loveless · Answer

@Jaime Zarate As long as the numbers work it’s always a good time to buy a house.

No matter what type of property you are looking for you will have to do lots of looking and analyzing before you settle on one.

Michael Magno · Answer

As the old adage goes, the best time to buy real estate was yesterday, the next best time is today. Much like the stock market, time in the market, always trumps "timing" the market. That being said, all investors have different goals, etc.

When to buy

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