“Stop purchasing a home in Seattle! Don’t do it.” That’s what some people are currently saying. Why?
In today’s video we are going to explore this. Let’s get right into it.
Rates are at a 20-year high and prices are still relatively high, making affordability really tough for many buyers. But, the biggest reason why some are saying NOT to make a home purchase in Seattle, Bellevue or across our region is because prices COULD go even lower.
Just look at this housing survey by Fannie Mae (http://bit.ly/3O0s3gf). It says Consumer Confidence in Housing Hits New All-Time Low! Only 16% of Consumers report that now is a good time to buy a home.
Another warning sign of the softening market is from this recent Seattle Times article (http://bit.ly/3E4izfq) saying that Seattle’s Redfin to cut workforce by at least 13%, stop flipping homes.
These are just 2 examples of reports that communicate doom and gloom. And because of this, at first glance, it might sound like good advice not to purchase a home now. I mean, why not wait until the market corrects more before making a home purchase?
Well, While Headlines are somewhat sensationalized and paint a picture of the market cool down, it’s time to zoom out and look at the big picture. Despite the rising costs of buying a home, and the potential further downturn, the benefits of homeownership tend to outweigh the drawbacks over the long term.
There are a lot of perks to homeownership.
For instance, you are in control of your environment. You are in charge and the master of your domain. Owning your home means you have Autonomy and can adjust your home to your liking.
It also means more financial stability for most people. When you pay rent, you are lining your landlord’s pocket. Ownership means you are putting money back in your pocket and building equity with every monthly mortgage payment.
On top of the principle buydown, you also have the benefit of home appreciation. Over time, homes tend to go up in value and this increases your net worth. The past 2 years, homes experienced record appreciation. Now we are experiencing those growing pains and necessary correction.
There are other financial benefits like tax advantages and the ability to borrow against the home. Homes are also a fantastic asset to hedge against inflation.
In addition to all this, you can have a sense of community where you live. Perhaps the best thing about home ownership is that peace of mind, sense of security, and ability to create amazing memories when you own.
Also, because of where we live, I am confident that greater Seattle will continue to outperform the national average when it comes to home price appreciation. We have so much going for us here.
Please do not take what I am saying out of context. I am not saying you or anyone else needs to buy a home right now. Purchasing, may never be in your best interest. But I always get concerned when the messaging throws the baby out with the bathwater. Because it doesn’t convey the full picture as to why homeownership is worth it. And whether you buy or wait to buy should depend on YOUR needs and specific situation.
Sure, there are a lot of headwinds to making a home purchase, and you should always be cautious. But, if you find a home that checks all the boxes, is in a location you like, you can afford it, and you feel it’s a good deal, buying that home could be one of the best decisions you ever make.
If you want to stay in the know, please hit the like and subscribe button. And if you are thinking about buying or selling a home, we’d love to have hear from you and discuss your goals.