So many of us are asking the same question right now: Should I buy a house now or wait until 2023? The short answer is, buy now! If you have the means, consider buying this fall.
The complicated answer is that this simple question depends on a number of factors around your family’s personal circumstances. However, on the whole, most experts and first-time homebuyers agree – it’s still a prime season for buying a home in Prosper, Celina, or Collin County.
Unlike some parts of the US, the DFW housing market is in a great place. The North Texas area is still in high demand, particularly because of its many new home communities.
Trying to decide whether to buy a house now or wait? Don’t wait too long and miss your opportunity. Consider these variables as you kick off your home search.
5 Reasons Why Now Is the Time to Buy A House
If you’re in a good financial position and your job is secure, it can be a great time to invest in a home. Ask any financial expert and they’ll tell you, owning a home or investing in real estate is the fastest route to building wealth.
Some reasons to buy a house now:
Credit score averages are on the rise.
Credit reporting agency, Experian, reports that, “The average credit score in the U.S. hit a record high of 714 in the third quarter of 2021, a 4-point increase from 2020.” Higher credit scores qualify buyers for the lowest interest rates. If you’ve been working on yours, now could be the time to cash in on the effort.
Interest rates tend to fall in the fall.
While it’s true that interest rates have gone up since their historic lows, they are still comparatively great. Plus, rates historically reach their lowest points of the year in Q4. What’s more, given where interest rates were just ten years ago, the average monthly mortgage payment has actually decreased. (Be sure to check the proposed tax rate in your area to get a better idea of your final amount.)
New build inventories are high.
The rush isn’t over, but home inventories are finally starting to catch up from where they were at the height of the buying frenzy. That’s especially true in new home communities like Lilyana by Hillwood, who have available homes from multiple top DFW homebuilders. That means more variety and inventory to choose from, making it a really a good time to buy.
Competition is cooling.
If the thought of engaging in a bidding war gives you pause, you’re certainly not alone. It can drive up the sales price of a home and draw out the time it takes to find your new space. Fortunately, data shows most homes have fewer bidders per listing right now. The National Association of REALTORS® reports that homes for sale are getting half as many offers as compared to Spring.
DFW has a strong job market.
If you’re going to buy a house, you really want job security. Plain and simple. Though no one can predict the future, Dallas and its many suburbs have some of the strongest job markets in the country, making it a great place to find opportunities. In fact, a recent report from the Bureau of Labor Statistics showed the local job gain rate increased 6.7%, almost double the national average.
Should you buy a house in 2022 FAQ:
- When is it too late to buy a home? As a rule of thumb, most financial professionals recommend spending no more than 30% of your gross monthly income on housing expenses. Once you exceed that threshold, you may need to wait until interest rates and/or home prices drop.
- When is it a good time to buy a house? The housing market has seasons. Generally, fall can be a less competitive time to buy a home. Sales prices and interest rates also historically tend to be lower during this time frame.
- Will 2023 be a good time to buy a house? Given how cagey the government has been about the economy, it’s unclear what the 2023 housing market will look like. Stay tuned to see what the federal reserve decides to do with interest rates.
- Is it better to buy a house in 2022 or in 2023? If you can financially afford it and the time is right for your family to settle, consider buying in 2022 to avoid potentially increasing interest rates in 2023.
Buy a New Home at Lilyana by Hillwood + Invest in Your Future
So, final verdict. Is it a good time to buy a home or is now a bad time to buy a house? You have our opinion, but do your own research and take your personal financial situation into account before deciding.
Just remember – things change quickly in real estate. Celina is the fastest growing city in North Texas, keeping attractive new home communities like Lilyana in high demand. That’s not only good for future resale value, it’s also a great place to settle and ride out whatever the economy does next.
Want to chat through your options and run your situation by a knowledgeable professional? Contact our builders for more information or take a virtual tour to see what Lilyana by Hillwood is all about!