Everyone needs a place to live.
Yes, some older "kids" might move back in with their parents for a few years and some people opt into work situations that come with housing -- like joining the military, working on a cruise ship, or opting for the Peace Corps -- but nearly every American needs to rent or buy a home.
Whether you should rent or buy has always been a big question.
In a broad sense, it makes sense to rent if you might have to move within a few years. Buying a home comes with all sorts of one-time costs that might not be recouped if you move on quickly.
And, while house prices have generally steadily gone up, there's no guarantee that that will be true at the exact time you have to sell.
If, however, you plan to spend at least a few years (maybe three or more) in the same place, buying generally makes sense, especially when rental pricing has increased so much.
If you're thinking about buying a house, history says that now is almost always the right time to buy.
Looking at the chart below shows that there have been some dips in median house prices, but over time, the price of a house generally increases.
Why Now Is Almost Always the Best Time to Buy a House
In the first quarter of 2020, the median U.S. house price came in at $329,000. That's up from $289,200 five years earlier, and a huge increase from $222,900 in 2010.
Over 10 years, the median price increased by over $100,000, and while it was not a straight-line increase, the numbers steadily rose.
If you wait to buy a house, history suggests you will pay more if you wait. That always begs the question, "But are we in a housing bubble?"
The reality is that bubbles tend to be regional.
Yes, there are markets like South Florida which have seen prices rise dramatically due to the pandemic. It's possible there's some price correction coming in markets like that, but there's no guarantee.
Contact Valleywide Realty
If you're thinking about buying or selling a home in the Central Valley, contact us today by calling (209) 831-9747 or click here to connect with us online.