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By Alysha Boles
contributing writer 

Waiting to buy?

Navigate Lending


August 14, 2021

Alysha Boles.

With how quickly houses are selling, is there anyone waiting to buy? I hear people comment they are waiting to buy "until the market crashes, until rates drop more, less competition" and more. Yes, all these thoughts are floating around in future buyers' minds and maybe even yours. How do you know if waiting is the right choice, or going to cost you more money while you wait?

Just about any online search for housing value data will show you that the long-term trend in housing value is up. In a nutshell, houses get more expensive. I purchased my first home in Tehachapi in 1999 for about $78,000. The value of that home will likely never be that low again, nor will my parent's first home, a brand-new build in Bear Valley, at the $85,000 they paid for back in the '80s. However, we all know that a housing value graph will not be perfectly flat or straight up. It will look more like the lines drawn by a yo-yo while heading up an escalator.

The overall long-term trend is up, but there will be moments of minor fluctuations in the short term. In fact, according to FHFA, California housing values have risen 45.22 percent in the past 5 years with only 14.31 percent of that being in the past 12 months. Since 1991, those values have risen 242.16 percent even with a true housing market crash. Buying today, you begin benefiting from rising housing values. If it isn't value, maybe it is interest rate concern.

We are still at a historical low in interest rates. In fact, rates this past week hit a 6-month low. Again, remember the yo-yo on an escalator? That image is true for interest rates as well. They trend one way or another but have some ups and downs along the way. Many analysts are projecting that we will start seeing an upward trend in rates. As rates go up, the market will naturally slow. Not to be confused with a crash, just a slowing of buying because changes in rate impact who and what people qualify for. Always a good idea to buy when rates are low because you can afford a higher purchase price for the same payment. Now for those who really care about rate, just keep in mind the interest rate on renting a home is equal to 100 percent.

So, let's talk rent.

Many people rent (and pay 100 percent interest) because sometimes it is cheaper than a house payment. Like housing values, rent has done nothing but increase over time. A mortgage payment will stay the same as you pay down the balance and eventually it is gone. Rent will always exist and increase. According to Zillow, median rent in the US over the past 10 years has increased 18 percent.

Of course, there are many more reasons people wait and I am happy to help guide curiosity and questions for those still wondering about specific situations.

You can contact Alysha Boles at (661) 858-7214, or visit See ad on this page.


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