How to navigate the current housing market?

Many real-estate experts agree that while the market may eventually cool somewhat, especially when mortgage rates start to rise, the chance of the market seeing a downturn like it did in the 1920-1930's is slim. One thing is for sure, rates will not stay low and with that in mind, you can or borrow some more right now or pay a higher interest rate down the road. The best thing you can do in today's market is to make a larger down payment, at least 10% or more if you can.

With the current unusual low inventory, it sure is a challenging market to navigate. If you are financially ready to purchase, renting long term might not make sense. If purchasing a home will improve your life, make you, your wife and your kids happier, you should not delay buying. Just make sure you know your comfort level and do not spend more than you can afford. If you can wait, that's ok too but in this market there is no guarantee prices will fall or ever return to pre-pandemic levels.

Some of the advantages are, it's like buying into a forced savings account while building equity and with the possibility to deduct mortgage interest and make a profit over time. Home ownership gives you more flexibity when it comes to enjoying your space and being able to 'make it your own'. On the contrary, it also comes with maintance costs, paying interest, insurance, taxes, etc. It's a trade off.

The BEST advice I can give you, if the market is 'overvalued', ADJUST your expectations of what you can get within your budget. Maybe consider purchasing a home that needs some updating or move out a bit further but don't necessarily decide not to buy if buying is what you really want and are ready for. Remember, rarely do you find an affordable home with everything you want but while you might not be able to change the location, you can change floors, paint, build an addition, plant trees and upgrade kitchens and bathrooms... It's ok to settle for a bit less while making it YOURS over time:).