I’m trying to move closer to my office to shorten a rather long commute. My plan is to sell my house, and use those funds for the down payment on the new place. The down side is what I’m looking to get into is at the edge of my range, but affordable. However, as mortgage rates rise it’s getting more difficult.
I bought the current place in 2005, right before the housing market tanked. My house is worth less than I bought it for, but I’m in the black at least.
I am worried about buying another house, and wandering right into the same housing pit I’m crawling out of if the economy tanks again. With Trump starting up a trade war, is the housing market at risk again? I don’t want to buy a house only to watch it lose 60% of its value all over again.
Where in California are you? Where I live the prices are well above the peak in 2007-2008. I was going to say wait for the next adjustment, which will come some day, but that might not be good advice if prices are low where you are.
Some things to look at - days on market of houses which are sold, how many bids they are getting, sale price versus asking price, and the inventory. Those things can give a clue.
My opinion. Yes, now is okay. Why? Mainly because the market has recovered as Voyager has indicated. While I am not a fan of President Trump’s tariff increase, I don’t see the increase as something that would do much damage to the housing market in the next year. Interest rates are rising but they are not rising quickly. So I’m not sure that would be a big factor.
My biggest fear would be purchasing at my “marginally capable” level. I see that Elk Grove is within the Sacramento sphere of influence, or whatever city planners call it. If your plan is to get closer to Sacto then I think you are a bit safer than not. The capitol will be an assured living zone, as opposed to San Andreas, for example, to your south.
But I still think it better to find something in the “I can afford this” range. I think that would cover you if the tariff situation really does turn things dire – and you possibly lose your job.
Just an opinion though. I’m well clear of the kind of decision that you face.