Buying a House This Year?? Is It a Good Plan?

The one thing that i am pretty sure of is that house prices will go down this year. But! I could be wrong.

There will be a lot of money printing. This usually goes into assets.

Interest rates at too high of a level, for too long stops the real estate market. But, the Fed may lower interest rates because of election year. But, the Fed has said it is going to keep interest rates high as long it takes to tame inflation. But, but, the Fed is going to print money (inflation) because it is inflate or die now.

With the really hard economy, a lot of people are losing their jobs, and that means a lot of foreclosures will be happening.

What does that mean? I am betting we will see the housing market go down this year (and much more in the future)

Lets say you could buy a house (like you had a lot of cryptos, or have just been saving cash) and you wonder if now is a good time to buy? Hey, look at the market, most of them are down 10%.

But, nothing is selling, even with the 10% slash in price. Things are staying on the market longer and longer.

From my viewpoint, house prices need to drop 50% at these interest rates before normal people can really get back into the housing market. How fast do you see sellers dropping the price of their house? This usually takes a long time, with people dropping the price a little every month or two.

My expectations are that house prices will never be low enough to restart buying. That each time that buyers might come back into the market, something worse happens in the economy, and housing just keeps going down.

There is a small town in Arizona, and the houses are all about 10% lower then they were a quarter ago.

The really big problem is that some of these places, if you could get a mortgage, are less than the rents be advertised. Far less.

So, would it be advantageous to buy? Its cheaper than renting?

But what if you could have bought the house for MUCH less if you waited longer? (almost half in some cases)

Financially it doesn't make any sense to buy. Not with future being so bleak. But, what if you need a place to stay? And you could either lose the money to rent, or put far less, each month into your own house.

My feelings are basically that if you can just afford the house, and you need the house, then just driving the hardest bargain for the best place is probably the best option. But, if you had to get a mortgage, then you are looking at an underwater situation a year into it. That doesn't seem worth it.

I expect house prices to continue falling. And i do not expect them to recover.

But, living in your own place may be really important in the upcoming turmoil. Having a place for all your food stores is important. And not having to move them because you want cheaper rent, is valuable.

But, but, putting money into a place is a losing proposition. However, you are looking at losing money either way. So maybe running the numbers are choosing the least losing plan is the best we can do.