Is it a good time to buy a house? (Baltimore: real estate market, rental)

[nitynity]

House prices are still higher than the pre-pandemic rates. Is this a good time to buy a new house or wait another year to two years? The last thing I want is the house prices dropping by 100 to 200 K in the next couple years and I’m stuck with a high mortgage.

I’m moving from TX. So another option would be to sell the current house and rent instead in MD for now.
That will eat up some of the down payment money, but is there a better option? Any tips or advices are highly appreciated.

[North Beach Person]

I would advise you, as will most others, to rent first, for a large number of reasons.

[bufflove]

”I’m stuck with a high mortgage”

This comment only makes sense if you're anticipating buying beyond your means, getting an adjustable-rate mortgage, and/or buying and then reselling the property in short order. I wouldn't recommend doing any of the above in any market. If you're buying something you can afford and plan to own the home for 7-10+ years then short term fluctuations in the real estate market don't negatively affect you (they can positively affect you though, e.g. a refi opportunity). That's a major reason for purchasing property in the first place: you insulate yourself from market risk and provide yourself with a stable monthly housing cost for 30 years.

On the other hand, renting affords you little stability but ultimate flexibility. Both are valuable in different ways. It's up to you, but personally I'd rent if moving to an area I'm unfamiliar with.

[MrRational]

Originally Posted by nitynity

I’m moving from TX. Any tips or advice are highly appreciated.

WHEREVER anyone is from ... WHEREVER they might want to move to ...

Take a year (or more) in a rental to dive deep in the new job, to make a few friends,
to learn your way around the areas, to be CERTAIN you really want to stay with that job,
really want to stay in the area, to be able to answer most of the questions you have now ...
from your own experience.

[MidValleyDad]

Be ready for sticker shock. In most of Maryland (especially in the Baltimore Washington region) prices often shock people coming in from other areas. Be ready to 1) commute further; 2) get a smaller house; 3)Spend significantly more than you made from your existing house. It is just something most of us who have moved to (or back to) this region.

[BigCityDreamer]

Originally Posted by nitynity

The last thing I want is the house prices dropping by 100 to 200 K in the next couple years and I’m stuck with a high mortgage.

What's wrong with that? Do you plan on selling your house 2 years after you buy it?

[ion475]

TBH, if you can afford it, have a stable job lined up, etc. there's not really "right time or wrong time" to buy a house.

So what if you're underwater? Unless you're selling in 1-2 years after you buy your house, if your house is in a good area with good school the price will eventually recover, period.

Another thing about Maryland (basically anywhere close to DC) is that things are a lot more recession-proof in the area due to government presence. This is not SF Bay Area where the tech bust resulted from overexpansion is causing headaches.

[nitynity]

Not plan to sell it. I was under the impression if the house were to drop the price I won’t be able to refinance it for a better APR and be stuck with higher premium unless I cover the difference out of pocket. Of course, it will eventually gain back the price sometime in the future.

[MrRational]

TBH, if you can afford it, have a stable job lined up, etc.
there's not really "right time or wrong time" to buy a house.

Of course there are MANY wrong times. The OP is perfect example of it too.

Originally Posted by nitynity

Not plan to sell it.

Assuming that plans work out as intended is the least valid basis.

[nitynity]

Initial plan was to wait another year or so before moving. But our son is going to middle school next year. Hence, thought it would be beneficial not to pull him out for another three years. That’s the rush. In addition, the realtor recommended selling now would be better than waiting because the home prices are already dropping. Might get a rental for atleast 6 months or so before making a purchase. Also wifey lined up a job in Ellicott city. Hence don’t see the point in waiting any further though we gona miss our 2.37% APR on our current house. Lol