Pros and Cons of Buying A House In Today’s Market

Buy now, or wait until 2024? That’s the question prospective homeowners are struggling to answer in today’s housing market. Home prices skyrocketed throughout the pandemic, and the Federal Reserve’s work to tame inflation has sent mortgage rates soaring too.

So, is it time to buy a home? Or is it better to wait on the sidelines in the hopes that prices or rates see a significant drop soon? And what if there’s a recession?

While the answer will vary for everyone, here are some compelling reasons for buying now.

 If you buy now, you start building equity immediately. According to Redfin, the median home price in Wisconsin in 1990 was $62,100, while just last month, the median home price hit $280,400.

 According to a recent study by the Federal Reserve, the median net worth of U.S. homeowners is 40x higher than the median net worth of renters. In real dollars, that translates to about $300,000 in net worth for a homeowner versus about $8000 for a renter.

 You have greater control over your monthly housing payment. Rents have gone up on average 4.17% from 1954 until 2023.

 Another reason why homeownership is key to wealth building is because of all the tax benefits that come with it. If you have more questions about the tax benefits of being a homeowner, make sure to speak with a tax professional!

 Last, but not least, buying a home allows you to make long lasting relationships and promotes wellbeing and a sense of community.