Inflation and Interest Rates are Rising, What The Future Looks Like for Housing Market Buyers

There have been so many changes in the housing market in the past few years that experts cannot form a uniform opinion. There are whispers of a housing market crash, while some experts believe it is thriving and will continue to do so.

Where does that leave homebuyers and sellers ready to invest their livelihood in the ever-changing, seemingly unstable market?

Expert Advice for First-Time Home Buyers and Homeowners

1. Focus on How Long You Plan to Own the Home Greg Wilson, a Chartered Financial Analyst with 22+ years of real estate investing experience, says that buying a house depends on your time horizon, not the market.

He said, "Unless your time horizon is only a few years, go ahead and buy when you are ready to buy. It's too tough to predict when and if prices will swing one way or another. Greg concluded by making the point that this is because a property is a long-term commitment, not a commitment to a market cycle.

2. Buying a Primary Residence is Not an Investment Andrew Herrig of Wealthy Nickel distinguishes between buying properties for investment and buying to have a roof over your head. With the current market dynamics of rising interest rates and potentially stabilizing or falling prices, investors and homeowners should be cautious in their approach."

However, Andrew said, "Buying or selling a primary home is rarely a financial decision. Your home is not an investment and should not be treated as such. As long as you are not overextending your finances to purchase, there is no reason to wait for a "better" market. Similar to trying to time the stock market and buy on the dips, that market may never come."

3. House Hack for Financial Independence Max Marvelous, a financial blogger and money expert at Maxmymoney, says that the best way to deal with the uncertainty and economic risk of a mortgage is to get others to contribute to it.

He said, "With housing accounting for more and more of the typical budget, finding creative ways to decrease your housing expense is prudent. House hacking is how many Millennials are lightening their mortgage load each month."

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