Dear David,
We’ve been renting since before the pandemic and have spent several years saving for our first home. We’ve managed to put together a 10 percent down payment and have secured mortgage pre-approval. On paper, we’re ready, and have started browsing listings and attending open houses. But the turmoil in the world is making us nervous. With trade wars, inflation, interest rate fluctuations, and uncertainty about whether prices will rise or fall, it’s hard to know if this is the right time to buy. Should we wait and see if prices come down, or move forward before things get potentially more expensive? – WAIVERING
DEAR WAIVERING: Rest assured that your concerns are incredibly common among first-time buyers, or anyone navigating an often overwhelming real estate landscape.
The honest answer? No one can say with certainty what the market will do in the short term. Prices might soften, or they might climb, and we’ve seen both happen within the same year. Even market experts may disagree on where things are headed. So instead of chasing the perfect conditions, try reframing the question: is the right time for you to move?
It’s important to keep in mind that you likely won’t be in your first home forever. At this stage in your journey, it’s a foot in the door that will help you build equity, experience home ownership, and enjoy something that is truly yours. Most first time buyers move on from their starter home within five to seven years, as life circumstances and family needs change.
Remember, you’re paying for a home already, but it belongs to your landlord, and you’re helping them build equity with each month that goes by. With 10 percent down and a mortgage pre-approval in place, you’re in a strong position to redirect that monthly payment towards your own financial future, rather than giving the funds to someone else.
In aviation, there’s something called an MEL, or Minimum Equipment List. These are the essential components an aircraft needs to fly safely. Apply this principle to buying a home by identifying your own “must-haves”, which are the absolute essentials a home needs to be functional and fulfilling for you now. Important considerations often include the location, number of bedrooms, proximity to work or family, outdoor space, and manageable budget.
Ultimately, buying your first home is about balancing readiness with practical needs as much as it is about predicting the market. Stay realistic and stay flexible. When your needs align with an available property, the “right time” usually becomes pretty clear.
PRO TIP: Have an honest conversation with your partner about your non-negotiables. Once you’re clear on your “MEL”, you can recognize when a listing meets the mark and feel confident moving forward. Remember, real estate is about the long game. #Advice #AskDavid #TheNegotiator