How many of you anticipated my answer to be "it depends"? Home buying and selling are incredibly personal decisions that require careful analysis of your financial situation. Are you self-employed, receive a salary, or drawing from retirement? Each of these scenarios would have different tax consequences, and each of these buyers has unique goals. In the first two scenarios, job stability and income are the most significant factors to consider. The days of qualifying for a mortgage based purely on your credit score for self-employed individuals are behind us. Those of us who are self-employed need adequate income and two-year work history in your profession to qualify for a loan. The qualification process for a salaried employee requires pay stubs and the last two years of tax returns. Retirees on a fixed income may be selling a home to downsize, and our seller's market will help them on one side of the transaction. None of the above scenarios are market-dependent and should be part of any home purchase analysis.
But is now the right time to buy a house in Central Oregon? It depends! Some experts see housing as the catalyst to pull us out of our pandemic related recession. Others believe we are due for a housing correction. Two factors to consider: 1) record-low interest rates. For many buyers under 3%! 2) What is your timeline for ownership? Real estate performs well over time but can be a bumpy ride if your goal is a quick turnaround. For those selling homes in high priced areas to purchase in Central Oregon, the decision to buy now is more straightforward.
When considering the current housing market, focus your attention on your financial situation, timeline, and homeownership goals—waiting for a housing crash before purchasing is a wise move for an investor looking to pay cash for properties. But, if your goal is to purchase a primary residence, there are many compelling reasons to consider buying today. If selling is right for you, the next 90 days look to be one of the more robust seller's markets in many years. Call Reed if you are looking for guidance with your housing decisions.
