Experts say you shouldn’t rush to buy a home this year — here’s why

Credit: AJC

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Buying your first house? Here are five tips to keep in mind, according to NerdWallet.

Credit: AJC

Those in the market for a home are aware that the country is still in a seller’s market. That means that demand for housing is exceeding availability.

Additionally, housing prices are continuing to climb, including in metro Atlanta.

Explore3 things you can do to buy a home in a seller’s market

Insider spoke to several economists about the housing outlook. They said increased prices will continue through 2021 and into 2022. The reason? Millennials are looking for homes, meaning demand will remain high. Economists say it will likely be difficult for the construction industry to keep pace.

The best-case scenario, according to Housing Wire lead analyst Logan Mohtashami, is price growth slowing down and supply returning in 2022. However, demographics could mean continued high demand. According to Mohtashami, the wave of first-time homebuyers will be “historic.”

Other experts have examples for why you shouldn’t purchase a home yet.

Jeff Tucker, senior economist at Zillow, told CNBC that with inventory beginning to rebound a little, buyers will have more options if they wait.

“This is a really challenging time to be a buyer. The market is as hot as we’ve ever seen it before,” Tucker said. “If they can watch and wait for the next several months, time is on their side.”

ExploreWhy Atlanta is one of the hottest housing markets for millennials

Buying a home this year has several drawbacks, according to The Mortgage Reports.

Low inventory means there’s more competition from cash buyers. To remain competitive, metro Atlanta real estate agent Bruce Ailion told MortgageLoan.com that buyers should consider giving bigger earnest money deposits, so they’ll be spending more upfront. There are also tougher mortgage standards. Although they’re beginning to loosen, it’s not as easy to secure a mortgage as it was pre-pandemic.

Yet there are some benefits to buying a home now.

Low-interest rates make them more affordable. The increasing home values create equity and there is a variety of no- and low-down-payment mortgage options.

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