Real Estate Crash Alert: 3 Reasons to Delay Buying a House Until 2024
If you’re thinking about buying a house in the near future, you might want to think again. The U.S. housing market is in a bubble that could burst anytime soon, leaving you with a bad deal and a lot of regrets. Here are three reasons why you should delay buying a house until 2024 or later.
- Housing prices are too high. The median home price in the U.S. reached a record high of $363,300 in June 2023, up 23.4% from a year ago, according to the National Association of Realtors. This is driven by low inventory, high demand, low interest rates, and inflation. However, this is unsustainable and unrealistic, as incomes have not kept up with the rising costs. Many buyers are overpaying for houses that are not worth it, and could end up underwater if prices fall.
- Housing demand is too low. The housing market is showing signs of cooling down, as buyers are getting priced out, exhausted, or discouraged by the fierce competition and bidding wars. The number of existing home sales fell 1.2% in June 2023, the fourth consecutive monthly decline, according to the National Association of Realtors. The number of pending home sales, which indicate future activity, also dropped 1.9% in June 2023, the second consecutive monthly decline, according to the same source. This indicates that the demand for houses is weakening, and could lead to a surplus of inventory and lower prices.
- Housing supply is too high. The housing market is facing a looming supply shock, as more homeowners are expected to list their houses for sale in the coming months and years. This is due to several factors, such as the end of the foreclosure moratorium, the expiration of the mortgage forbearance program, the return of normal life after the pandemic, and the aging of the baby boomer generation. These factors could trigger a wave of sellers who want to cash out, downsize, relocate, or retire. This could flood the market with more houses than buyers can absorb, and drive prices down.
In Conclusion: Wait for a More Stable Market
In conclusion, buying a house in 2023 is a risky move that could cost you a lot of money and headaches. The housing market is in a bubble that is bound to pop sooner or later, and you don’t want to be caught in the middle of it. You’re better off waiting until 2024 or later when the market is more balanced and stable, and you can find a better deal and a better house. So, take a deep breath, put your house-hunting plans on hold, and get ready to make a more informed decision when the time is right. Happy house hunting in 2024!