Buy a house now or hold off awhile?

[NativeTexan76]

I weigh in that RE prices seem high and will probably drop if we go back into a recession or higher interest rates. (Just look at sky-high stock prices right now- we haven't had a significant correction for a few years. There will be a "correction" at some point, but it's hard to time.)

We bought a house in Austin in 2012- not totally happy with the house/ area, but we can make it work for now. If prices fall at some point in the next few years, I'd like to buy another house and rent out our current one. That's our plan. But, unlike the OP, we're not feeling any pressure either way to move or stay.

[austin-steve]

Originally Posted by NativeTexan76

I weigh in that RE prices seem high and will probably drop if we go back into a recession or higher interest rates. (Just look at sky-high stock prices right now- we haven't had a significant correction for a few years. There will be a "correction" at some point, but it's hard to time.)

We bought a house in Austin in 2012- not totally happy with the house/ area, but we can make it work for now. If prices fall at some point in the next few years, I'd like to buy another house and rent out our current one. That's our plan. But, unlike the OP, we're not feeling any pressure either way to move or stay.

The funny thing is, people always say that but then when the Buyer's Market comes, buyers are paralyzed with fear and uncertainty. There was no better time to buy in Austin recently than 2008-2011, yet buyers in that time frame would wring their hands and worry about paying too much.

Then the market turns and those same buyers, feeling consoled by the fact that everyone wants to buy now, pay WAY more on bid up homes than if they had taken advantage of the slack market.

There is a deep psychology and economic theory to all of this. I'm not a psychologist or economist, just an observer. But what I observe is that the happiest (emotionally) buyers are the ones who beat everyone out on multiple offers, paying $30K over value. Meanwhile, the poor buyer from 2010 who paid $300K for a home now worth $500k Central, was at the time, gripped with fear, remorse and uncertainty. Today he feels better of course. But at the time ...

Steve

[NativeTexan76]

Totally agree with you Austin-Steve

I'm hoping that as I get older and more experienced, I can recognize good times to buy. e.g. I'm starting to diversify outside of stocks right now- hope to have the cahones to buy in when there's another correction. And, to not freak out and sell when an investment drops!

[balor123]

Forget the fundamentals. Prices here, like everywhere, rise and fall with the national and international markets. Want cheaper homes? Wait for the next recession. The tail end of a recession is a good time to buy, like 2012, because prices are still cheap and you have confidence that you can afford them. We're past that point now. Prices don't need to fall btw, they just need to level and if your income rises significantly then affordability can increase substantially.

Given your requirements, I'd suggest Crestview to consider. Like others, I bought in 2012 and have made/saved fantastic amounts of money on my home but I also dislike it and the location. Schools are good but the house and neighborhood are not my style. If I could go back, then I'd opt for something simple, new, small, and cheap. One of those ultra-modern 2000sf condos would be perfect. Or a highly renovated bungalow.