HACKER Q&A
📣 Macintosh007

Is now a bad time to buy a home?


My wife and I have been saving for a house for the past few years, and were thinking about purchasing one this year. And with COVID-19, I’m curious what people think will happen to the housing market?

  👤 eloff Accepted Answer ✓
Real estate is a lagging indicator, meaning it lags quite a bit behind changes in the economy. I suspect home prices will drop after this crisis. Probably 1-2 years from now. The economy is going to take a big hit, maybe the largest since the great depression.

I'm not qualified to offer financial advice, but that's what I've been thinking for myself personally. I don't have a crystal ball though.

👤 sigmaprimus
You have to live somewhere, unless you are living for free with relatives your probably paying rent right now.

With mortgage rates as low as they are right now, chances are your paying more in rent than you would paying off a mortgage.

So it's really how you look at it, I see it like you have two choices, pay someone else's mortgage by renting or pay your own.

👤 aphextron
It depends on your market. But if you are in an under appreciated housing market in a decent size city with good growth potential, and you have secure income, now is a great time to buy a home. With the recent fed rate cut mortgages will be at an all time low (if you have good credit and can get a loan).