Thoughts on buying a house now vs a year from now (Portland: sales, renting)

[yellowanchor]

I know this is a slightly loaded question and probably asked to death, but curious on the opinions here. Especially in the Southern Maine area.

Not looking in Portland specifically but small towns within about a 45 minute radius outside of Portland, West and South.

We are first time home buyers. Looking for an older house in decent condition.

Struggling whether it's a better idea to buy within the next 3-4 months or wait until next fall/winter.
OK with refinancing in the future, just not sure what to think about overall home prices now vs. the the next year or so.

Curious of what the thoughts are here.

Thanks!

[Submariner]

I think it is a crap shoot right now.

With inflation, the US dollar could lose more value over the next year, which would drive prices up.

Or prices could continue to go up on their own.

Or both.

Your crystal ball is as good as anyone else' crystal ball.

[WhoFanMe]

Originally Posted by yellowanchor

I know this is a slightly loaded question and probably asked to death, but curious on the opinions here. Especially in the Southern Maine area.

Not looking in Portland specifically but small towns within about a 45 minute radius outside of Portland, West and South.

We are first time home buyers. Looking for an older house in decent condition.

Struggling whether it's a better idea to buy within the next 3-4 months or wait until next fall/winter.
OK with refinancing in the future, just not sure what to think about overall home prices now vs. the the next year or so.

Curious of what the thoughts are here.

Thanks!

It's a tough call. Prices are stable in this market as there are still more buyers than sellers, which we've had pre-pandemic and throughout it. Many with 2-4% interest rates aren't excited about trading up to 6.5% or higher on a new home and are holding fast. Our biggest issue is lack of homes to purchase and I don't see that changing with low unemployment and record high home equity. Incomes have not kept up with the jump in home prices over the past few years, which is squeezing the first time buyer. As you mentioned, many are going to 7 year adjustable rates, thinking they'll sell before then or refinance if/when rates are lower. One major lender is offering to waive closing costs within the first 2 years if a buyer refinances with them.

[Hemlock140]

I have a relative renting in Hillsboro that has wanted to buy for a couple of years, hoping for prices to drop. Now that they have, interest rates are up. As I told him, they key is to jump in when those to factors moderate. No one can predict the future, but if interest rates get low again, even 2%, buy before the resulting increase in prices. I don't think we have seen the bottom of the market yet, but it's winter, and as sales pick up in spring so may prices.