🏠 Is This The Worst Time In History to Buy a House?
Is it the worst time to buy a home? Honestly, it might be. If you’ve spent any time on Zillow recently, you’ve probably felt it—home prices are outrageous, and interest rates aren’t doing anyone any favors. But let’s dig into the numbers to see if the data backs up what we’re all feeling.
1. The Housing Price Index
First, let’s look at the Housing Price Index.
This measures home prices over time, and right now, we’re in completely uncharted territory. Home prices have skyrocketed to levels we’ve never seen before without a correction following soon after.
History tells us that when prices rise this quickly, they don’t stay there. Buying now might mean paying top dollar, just before the market dips.
2. Realtors
Now let’s talk about realtors. Believe it or not, the number of people becoming realtors is a surprisingly good indicator of what’s happening in the housing market.
During the Great Recession, realtor sign-ups hit record highs for three straight years—right as the market was on the verge of collapsing.
Why does this matter?
When you see a wave of new realtors, it often signals that things are overheated, and we’re seeing that same trend today.
3. Home Prices VS Median Income
But the real story is home prices compared to median income. This is where the housing market starts to feel downright unsustainable.
Bad things can happen when home prices get too far ahead of what people earn.
Right now, that gap is wider than it’s been at almost any point in U.S. history. The math doesn’t add up. If people can’t afford to buy homes, demand will shrink, and prices will eventually have to come down.
So, is it the worst time to buy a home? Maybe. What we do know is that the market is way out of balance. Whether prices drop, interest rates ease, or both, the opportunities to buy will likely get better. For now, patience might be your best strategy. Sit tight, save up, and be ready to jump in when the numbers actually make sense.
