Should You Buy A Home In 2023 (Or Wait For A Crash)
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- Опубликовано: 8 фев 2023
- Should you buy a house in 2023, or should you wait for a housing market crash?
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2 years ago I bought my first home in the suburbs of Dallas Texas, at the age of 22. I bought at a time when house prices were far cheaper than where they’re at now and when mortgage rates were practically at all-time lows. It’s fair to say that I got extremely lucky. And it crossed my mind recently, that if I had instead waited until now in 2023 to buy my first home, there would have been no way I would have been able to afford it.
It’s crazy, I bought my house in 2021 for $285,000, and I had a housing payment at the time of $1,750 per month. Now guess how much it would have cost me If I were to have bought my house today? Close to $350,000, and I would have a housing payment of…not $2,000, not $2,500, but $3,000 per month. And you know what, even if I had the money to afford to buy a house in today’s market, I would honestly be a little hesitant to pull the trigger since the outlook of the real estate market in 2023 isn’t looking too great for us.
I feel like we’re all in this similar boat of trying to figure out whether buying a house in 2023 is a good idea, or whether we should just hold out until 2024 in the hopes that the real estate market improves.
Topics Covered:
Housing market 2023, real estate, interest rates, housing crisis, is the housing market going to crash in 2023, real estate investing, real estate bubble, housing market 2023 forecast, should i buy a home in 2023, and personal finance.
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Everything in this video is of my own opinion and could be wrong. I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
Hope you all have a great rest of your day! As always, thanks for watching :)
Love your content and just subscribed
Please, don’t make the mistake the national media does - don’t speak about home values in generalities. People need to see what is happening in their micro markets. You can’t compare what’s happening in the sunbelt states right now and what’s happening in the mid-west. Completely different markets. Real Estate is micro economy. It all matters what’s happening in your specific area, no more than a 20-30 mile radius. In Chicagoland it’s extreme sellers market again, but not all counties have the same intensity.
1000% agree. I live in the Washington DC region - NOTHING is slowing down here. On the contrary, people are relocating for stable Government jobs and buying everything in sight. It's very much a seller's market. I think I saw 2 months of buyer's market here when interest first hit 7%. It slowed people down for a minute, then it all came back to seller's.
In the midwest we think it's the twight zone in other states! More then half what they pay!! And good constructon not grap!!!
Oh God, you're in Texas too!! Geez. Well that's too bad for us because Canadian homes cost more even when the exchange the currency is US. The average home in Canada is 650k USD. I'm sure you wouldn't have purchased a home in Canada or likely moved locations. But some folks can't move due to family. What is one to
do?
Your editing is so good. I have to rewatch your videos at least 5 times because I'm trying to learn but get distracted by the entertainment value. That's not a bad thing. :)
Lol thanks for boosting my RUclips algorithm!
I only bought a house because rent was way more expensive than a mortgage payment (plus other benefits). I don't care if people think I'm stupid. For me and my situation, it was worth it. If they lowered rent, i bet people would be less inclined to even think about buying a house.
Fair enough!
Same, we think for the rent prices that are currently are at, Ibetter off getting a house paying more so the price as renting. In my area rents have been 1800 or more for at least a 2 bed. For a 3 bed is 2000 to 3000. We used to live in a town home for rent of 1800, 2 years ago, 3 bed and 2½ baths, it was nice, current rent is around 3000 something. Dont get me started in the fact that one has to be making 3 times the amount to afford rent. Many being force to go back to their parents. Like myself and husband, which we cant continue due to the fact that I do have 19 month old child and we all need our own space.
Do not ignore for a second, the bidding wars. With the supply of houses low, the moment interest rates fall to 5% or lower, more people will jump to buy the few houses that exist, result in a severe bidding war. I think this is the new normal - more rentals, less owning. I just don't see an end to what Covid introduced - bidding wars, inspection waving, fixer-uppers etc.
Valuable insights, thanks!
The house she sent her, in the beginning, took me 🤣🤣
Very talented impressive lady.I love your personality way of talking.
If your going to buy a fixer upper as cheap as you can yes it’s work even if the house isn’t in your state after moving fix it up all you want
Nice video ! Me and my wife watched your earlier video , did our due research and bought a house recently .. hope we made great start 😅 sensing the uncertain market this year
Wish you both the best of luck!
Very honest and informative contents
Property taxes in Texas are the worst? Allow me to introduce you to New Jersey
I always bought low, right when the economy crashed... 3x. I will wait. My gut instinct for real estate has not let me down. 😉
Great work Karson! Scooby snacks for you.
My allegiance is to Liberty, the Repubic and Democracy.
Great information as always. God bless hope you have a great weekend
Thank you so much, hope you have a great weekend as well!
great vid why you don't have more followers, you definitely deserve more
5-10%may not be a huge difference in some places, but that’s a pretty big deal in nyc. Though I don’t think nyc home price will drop to that rate. At least not manhattan.
Thank you!
Just discovered your channel great content 👍
Hey Karson, I just watched your video and I must say that it was really informative and well-made. I loved your videos. I was wondering if I could help you edit your videos and also make highly engaging shorts for you to grow your business.
Hey you need flames in the thumbnail! Joking aside great video as always
That’s why the video is under performing lol
Home prices in my area haven't flat lined and continues to drop. So I'll wait.
👍
Here's my experience: I bought a house in the late 80s, which were quickly followed by a drop in real estate in the early 90s. Interest rates were around 8-10 percent, and my monthly payments significantly increased from the rent I was paying for my apartment.
Now the house is worth about half a mil, I burned my mortgage, and property taxes are based on the purchase price from 30 years ago. Looking back, I am surprised I wasn't more scared about the things I know now but didn't know then.
I'm not saying I am some type of financial genius and did everything right. But sometimes you just have to jump and trust the guy who packed your parachute, so to speak.
Fwiw, my understanding is that California is the only state that revalues real estate for property tax purposes only on change of ownership, as opposed to on a regular basis (most states) or frozen indefinitely (such as Delaware until recently)
How do the home prices compare now to when you bought? The bottom line is.. just wait
@@MrGriff305 I am talking about SoCal real estate. Believe it or not, half a mil is the bottom rung of the real estate ladder here.
Following my post, I did some Zillow-shopping in my ZIP code. Most properties now list in the 600 to 700 thousand range. This weekend was an open house of a nicely remodeled residence that had the attached 2-car garage converted into an ADU, suitable for renting. It had 3 BRs with en-suite baths. Two were kind of small, but the MBR was nice enough.
Of course, now the garage space for cars and storage is lost.
The price?? 1,150,000 dollars. That's right, folks, I officially moved up into a million dollar neighborhood, and I didn't even have to leave the house to do it.
So what ever you think of the current real estate madness, everybody who predicted a crash at any point during the last five years or so has been sorely mistaken.
Great content and advice.
Thanks Tom!
I bought my home in 2009 for 120k. It's now worth over $300k. Which is pretty high for the state of NM. It's already paid off. I'm looking to buy my dream home, but holy cow! The ones I like are $450k plus. I barely have $100k saved up towards my dream home...it may be awhile until I can buy my dream home... I plan to keep my current home as a cash flowing rental. I just need to know where to park my cash while I rack up more money 💰
Great content as always, thank you. ps. I think home values will go down more than 5% in 2023... by at least 3x that.
Appreciate it!
I agree but I think prices will fall by about 50% by the time the crash is over. I think people aren't ready for this high interest rate environment because they've been so low for so long. Liquidity will dry up and people will be desperate. Job losses will force foreclosures. The investment bubble in real estate is the highest it's ever been in history which you can see when you see how many people talk about how great real estate has been for them as an investment (this in itself will likely be the catalyst for the bubble). I can go on and on about the reasons we'll see such a huge crash but I honestly think by the time we're done investors won't touch housing for awhile because of how much they'll lose.
Housing is a necessity it has been and alway will be. Let speculators speculate all they want. Everyone watching this video lives in a home either they rent or own… “bubbles” will come and go but the market will always recover to new highs.
We can never predict how far the government will kick the can down the road!
Lol when millennials get 50-60 and sweet for retirement, that is when the general depression will occurs.. Right when you thought you had your life in order and Powell had passed away lol
Wish I started buying houses about 10 years ago.
Same, except I would I have been 14
@@KarsonGaule Aww! 😂That’s cute. ❤
Really great video Karson! Question:
You recommend staying in the house at least 5-7 years, which makes perfect sense. What if we have to relocate unexpectedly after 2-3 years for a new job for example: what are the pros and cons of getting a tenant in the property so that you can keep it and so that you are able relocate in a different state for your new job (renting an apartment for yourself). Are there tax implications to living in your property versus having a tenant in the house? Does it still make financial sense?
It would be great if you could do a video on the cost implications of purchasing a house to live in it versus having tenants (or a combination of both) and what would make most financial sense. That would be awesome!
If you buy or bought a home home since rates went up you won’t make money on rent in most areas unless you put 50% down or more.
Wow, I would kill for a 300k home in my city. Right now a starter home is 750K, and 7.5% interest.
Buy a house because you love it and wanna live there . Don’t wait for it to drop , what if it never does and goes up again. You’ll wish you bought before it went up again .
👍
Holy cow…you’re only 24-25?!
Asking a realtor if you should buy a home is like asking a barber if you need a haircut. I'll definitely handle my own finances and not listen to people on RUclips...
Sounds good!
I'd wait for a crash...
How did you calculate that $3000 payment? Taxes must be more expensive where you are because I can only calculate a $3000 payment on a 350k property if it's 100% LTV and an 8% rate.
Yeah I was including property taxes and insurance, and like I said at the end of the video, property taxes in Texas are very high!
I have a 440k house and my taxes are about 5k. I live in a nice suburb outside if Conroe city limits. There are areas by the lake with taxes 2x what I pay. Some people where i work commute an hour becauee they live on large properties but in in poor counties. Really depends on the county, community, schools etc...
The experts say the rates could rise, stay the same, or decrease lol
They are right.
It's not Real-A-tors. It's just Real-tors.
NO!
What are your thoughts on buying in an HOA?
I’m glad I was able to refinance for a cheaper rate…😊😊
Great to hear!
I’m waiting for the housing market to crash 90% and then buy it.
Lol
@@KarsonGaule 50% down = YES
Maybe not 90% but I can see a 50% to a 60% drop. It happened in 07 and these cycles happen every 11 years or so.
Not gonna happen. Not enough supply, and most people can't compete with investors.
@@lalexander1144exactly my thoughts. The U.S. got lucky because it was in a bad economy. Average ppl can’t compete with investors which is what is keeping the homes high. Also, banks already have a lot of protection from loaning out money to anyone. You have to have a lot of proof to buy a home.
How much of this applies to rental properties? The interest rates only affect those who need loans. Investors who who can buy a home outright won't have to worry about the high interest.
Also those who wait for a crash may end up with fewer availability since investment companies might have bought up all the good houses while everyone else sat on their hands.
Yeah you guys are a problem for people who want to buy their homes.
Y her hands r small?
aged poorly. it didnt crash. it got way more expensive.
My rule of thumb: IF YOU FIND A HOUSE YOU LIKE, AND YOU CAN AFFORD IT, JUST BUY IT! STOP WAITING FOR A CRASH THAT ISN'T COMING FOR A WHILE!
For everyone's sake, scenario 3 is the WORST scenario...if interest rates drop to 5%, but the house inventory doesn't change, we are going to fall into severe bidding wars. And the market will be even worse than what it is right now.
My situation I am looking for a 2 bed condo with an HOA that isn't a cult that is nearby my office. Houses cost $400K+ meanwhile condos are way more affordable. It's the middle ground for me and i work too much to have time to be fixing houses. Good luck everyone :)
I love your intro skit.
So depressing 🥲 I’m born and raised here in Dallas and regret not buying back when I could.
Now 250 gets you nothing