Should I buy a home in today’s market?

If becoming a homeowner is on your mind, you may have asked yourself: is now the right time to buy a home given today’s real estate market?

With the overall housing supply limited and home prices declining after reaching record highs across the country in 2022, many are left wondering if now is the right time to make that big offer. First-time homebuyers in particular are facing a difficult time in their search for affordable home options. Yet, amidst the current housing market predictions and shifts, there are a number of reasons to continue chasing your dream of homeownership. From the stability of a steady monthly payment to taking advantage of lower home prices, here are four benefits of owning a home in today’s market: 

1. Less Competition. If a bidding war isn’t your cup of tea, then buying a house in a flat or declining market might work in your favor. Let’s rewind to the housing craze of the pandemic. Inventory shortages and surging demands heated the competition for48% of homes on the market, which raked in three or more offers. This put a pause on the homeownership dream for many hopeful first-time buyers. A more balanced market can help cool some of the outrageous buying behaviors while allowing new house hunters to make informed decisions without the extreme pressures seen in last year’s madness. Additionally, skyrocketing mortgage rates have caused many homeowners to sit tight and wait out the market, further calming the competition.

2. Potential of Lower Home Prices. In today’s market, the housing inventory is still tight, which has prevented home prices from decreasing significantly, and, without an enticing cash or higher offer, this can make it difficult for first-time buyers to enter the market. However, high interest rates, inflation and conversations of a recession have had a noticeable impact on housing prices. In fact, the median price for a single family home fell 10%+ from $432k in May to $388k based on Redfin data.
3. Fixed Monthly Payment. Regardless of the state of the housing market, owning a home means having more control over your monthly house payment. Renters are at the mercy of landlord decisions. While those who rent may have a signed contract, renewal periods are times of uncertainty and unwanted anxiety. Owning a home provides a stable monthly payment, making overall budgeting more predictable. Post pandemic a season of uncertainty ensued and many saw a shortage of rental homes from which to choose and the downsides of living at the whim of fickle landlords 
4. Increased Net Worth. There is a reason the American Dream of homeownership has stood the test of time. th. This rite of passage encompasses economic benefits to build wealth through home appreciation. In fact, the difference between homeowners and renters reveals a significant difference in net worth, as US homeowners had a medium net worth of $255,000 as compared to renters’ net worth of $6,300, according to the Federal Reserve’s Survey of Consumer Finances. Some view homeownership as a type of savings account in the form of having a portion of the monthly house payment going into the equity of the home. While homeownership is not an automatic ticket to wealth, the financial benefits – home appreciation, equity building and a stable monthly payment – are certainly enticing aspects of jumping into the market. 

There is no time like the present to learn more about purchasing your first home to live your future now. At Ownify, we’re rebuilding the path to homeownership to make sure that those who are eager to reap the benefits of owning a home have the support, resources and partner they need to make their dream a reality without having to face skyrocketing mortgage rates. While flat or declining home prices can open up more options to find a home in your budget range, we know there are other financial hurdles for first-time homebuyers. That’s why at Ownify, we’re on a mission to make homeownership achievable for the next generation of buyers. If you're ready to start your home search in the North Carolina Triangle region, ask your real estate agent about purchasing your home with Ownify, or reach out if you would like an introduction to a local agent.

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©2023 Ownify, Inc. All rights reserved. Frank Rohde is CEO and Founder of Ownify, Inc.