What’s that you say? “That’s just a self-serving answer from a Realtor. That’s what you’d expect him to say.”

And.. well… you’re not totally wrong. Let’s be honest. But before you tune out, let me explain why I think that. I’ll be quick..ish.

Okay, so why is it a good time to buy at the beginning of 2022? Prices are as high as they’ve ever been, you must be crazy to buy now? Again, that’s not totally wrong and it brings me to my first point:

Being near an all-time high isn’t unusual
It’s not that unusual to be near all-time highs. Looking at the stock market, about 47% of the time the market is within 5% of all-time highs. About 25% of the time they’re within 1% of the all-time high. So essentially, that’s to say that if the market keeps going up every day would be an all-time high. That’s not to say that’s not a valid concern or if things are crazy overinflated it wouldn’t be an issue.

Home Prices are still going up
I’m expecting things to slow down on their appreciation, but we’ll see as the stats start to come out if that’s the case. But I know a few people who wanted to wait out these high prices. I remember speaking to them around the end of 2019. Now you look back and wish you could’ve bought then. Even a year ago.

Rates are going to rise
Rising rates are going to slow the price appreciation. I don’t think it’ll be enough to really reduce prices, but I could be wrong. But as rates rise, the reason that prices fall is that the cost of a loan goes up so people can afford less home. So when you look at it, yes the price on the home went down, but unless you’re paying cash, your monthly payment is more expensive.

Rates are still at historic lows
Rates have gone up a little bit but they’re still at historic lows. They won’t be here forever.

Debt is a hedge against inflation
This is for both investors and just primary homeowners. If you have a big old chunk of debt, and inflation goes haywire, that’s actually to your benefit because now that payment is staying the same, but you’re paying with less valuable dollars. Of course, inflation is assuming your wages would also increase with inflation and we all know that’s not always the case, so take it with some salt.

And those are the 5 reasons I have for why you should buy a home in 2022. Let me know what you think!