Here’s a story of why waiting to buy a home can be a bad financial decision.

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When I first started out in the business, I was using Zillow and buying leads from them. I got one that was a nice couple from Connecticut that decided they wanted to purchase in Rhode Island. They found a beautiful mansion up in Ichabod, but we couldn’t quite make the money or the timing work.

Fast forward six years, I had left the big-box brokerage I was at and started my own team. I had my first office space, and was still in contact with this couple. They were business owners as well, and in the husband’s tradition, they gave me a $20 bill that they wrote a good-luck message in Greek on. It went up on my board that you can still see behind me in the video above.

This couple spent five years looking for a home and a commercial property in Newport, and we were trying to time things out. We kept in touch for many years. Finally in 2019, they found what they wanted.


 

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      If prices and interest rates go up, things will get much more expensive.

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Why am I telling you this story? I found out recently that a young first-time homebuyer is getting out of the market because they feel everything is too expensive right now. I get that feeling.

However, this couple spent five or six years looking for a property, and all they did was watch prices go up and up. Had they bought in 2016, they could have gotten a home for $300,000. They ended up paying $450,000 in 2019. Comparable properties in this neighborhood today are up to $630,000. That’s an increase of $180,000 in just two years.

The moral of the story is this: Interest rates change, market rates change, but there is no indicator on the horizon that values are going to decrease. What there is an indicator of is increased mortgage rates. If the values go up, then the cost of borrowing money will go up, and we’ll see things get more and more expensive.

If you’re thinking about sitting out for now, I urge you to reconsider. Reach out to us via phone or email today, and let’s go over your personal information. I look forward to hearing from you soon.