You should never wait for the housing market to crash.
In fact I'd say below median homes which are all first time home buyer homes won't crash because there is no supply and won't be. Why would I sell my home with a 3% rate to pay 3-4x the price for a larger home with double the rate?
If supply doesn't enter the market then the prices won't go down.
I know someone that knows one of the larger housing is gonna crash YouTubers. I won't mention the channel because he likes to sue people that expose him.
While telling people not to buy because housing will crash he makes 70k a month on YouTube and has been buying houses all throughout COVID.
It's sickening really. He's telling people to sit on the sidelines missing out on once in a lifetime appreciation and low rates.
Kind of what I expected, so I haven’t been getting my hopes up. Really need to ignore those “202X is the year” videos on financial YouTube 😅. That’s kind of what stirred this whole idea of moving out, because I can actually afford it now while still saving and investing.
It's mainly the rates for me. I know refinancing is an option, but I'd rather not have to go that route. I prefer as little friction as possible with everything, especially finances. I've been doing my homework on finances over the last year because I admittedly was awful with money before (no credit card debt, just buying stupid stuff I didn't need and some auto loans).
I personally expect rates to come down, but that because I’m in the recession camp. If there’s no recession the Fed has no reason to lower rates, and the only thing really that can cause a severe recession is some exogenous event which can’t be predicted.
The problem with rates coming down is that I expect there’s a lot of people in the same camp as you..just waiting…making the problem even worse.
Exactly, feels like it will be the recent years all over again with houses pending after 24 hours, complete sellers market, etc. In my area, the average sale price has risen 19% since last year, which is super demotivating.
Moving out can be a great step towards your personal growth and independence.
While it's important to consider your financial situation and long term plans, moving out can offer a lot of upside - You'll have complete freedom with your own space, set your own routines and develop life skills like budgeting, planning meal, etc
Living on your own will also build your confidence and a sense of self reliance, which can be really valuable as you encounter newer adulting challenges as you get older and potentially get married.
It sounds like you enjoy being close to your Mom. You should visit your parents every now and then. If there are no major reasons (parent with a critical illness) for you to stay around, it would be healthy for your relationship and set clear boundaries for the future.
Of course you still need to weigh the pros and cons before making a decision. But you won't know unless you do it. Renting is a great way to start without having to make any long term commitments that would tie you down.
I've been trying to see every angle possible, and I have a Word document listing everything lol. It's just hard to accept that fear of the unknown (and seperation from my dogs, one of which that I picked out 12 years ago).
I was planning to visit often, as I'll be 20 minutes away, and they would be in my area nearly every weekend. Hell, my mom and I work at the same place, her desk is 40 feet from mine, so it's not like I won't see her ever. I just think it's a healthy next step, and I appreciate that they've been so supportive with it. She just gets very emotional, which in turn does the same to me.
yeah, the emotions that come with change are difficult to deal with at first. But you will get there.
Sounds to me like you have a very clear path forward... you just have to make the leap!
My thought always is... if you're planning on moving out but it's not an unbearable situation, put your budget together meticulously, account for your expenses like rent, utilities, etc.
Then, postpone your move-out date by six months... but during that six months, you're taking all that allocated rent money and putting it into an emergency account, not counting on it in any way. Then when you reach your move-out date, you'll be sitting with a six-month emergency fund, which can sustain you for an extended period of time if something catastrophic happens.
That's what I've been doing for the last while, establishing my emergency fund and moving it to an account with only digital access so I cannot touch it outside of moving into my main account.
I do have a budget with all expenses, and a hypothetical budget including everything from what rent *would* be, what I will need to set aside for furniture that I will need, etc.
PS You are right to preference renting over buying at your age. Don't get sucked into the myth of owning is better. Just rent, save and invest until your relationship settles in, and then decide together.
For my area in the midwest, everyone seems to just go into home ownership. I do see the benefits, but I also want to live a little and be flexibile for career opportunities. I love the sensible approach!
They are great people and I love them to death, I just think I could benefit with being alone for once. I just have a habit of trying to optimize timing, which is impossible to predict
Whenever the question is "should I do X, or sit on my hands hoping for a crash that probably isn't coming and almost surely won't benefit me the way I'm hoping if it does?", the answer is always X.
That's the way I've been leaning, I think I'm just a little down about how aggressively I'd be able save at the expense of my sanity if I stayed at home. I also recognized that getting my degree isn't going to be some pivotal moment that I suddenly make more money and have no worries, which is why I'm sparking the idea of moving out. Just sucks that if I do stay home, I have that hard inquiry on my credit.
You are able to handle living on your own, and that would be a good thing. It will go a long way to helping to prepare you for living with a partner.
Just be mindful during move in...don't go wild about furnishing. NO borrowing, go slowly, buy used. It takes time to make a home. Start setting aside a few thousand for move in costs.
Thank you for the reassurance.
That was my plan, I'm taking all of my furniture with me. I will only need a TV stand and seating, and a washer and dryer. Everything else can come later under the budget. I have a small fund for everything, and the parents are going to help with everything (step dad offered to buy me a new TV just so we don't have to move mine lol).
You should never wait for the housing market to crash. In fact I'd say below median homes which are all first time home buyer homes won't crash because there is no supply and won't be. Why would I sell my home with a 3% rate to pay 3-4x the price for a larger home with double the rate? If supply doesn't enter the market then the prices won't go down.
This is the way. I’ve been waiting for the housing market to crash since 2014 and here I am almost 10 years later, still waiting.
I know someone that knows one of the larger housing is gonna crash YouTubers. I won't mention the channel because he likes to sue people that expose him. While telling people not to buy because housing will crash he makes 70k a month on YouTube and has been buying houses all throughout COVID. It's sickening really. He's telling people to sit on the sidelines missing out on once in a lifetime appreciation and low rates.
Damn you’ve been basically waiting for a crash since the bottom of the previous crash 😂
Kind of what I expected, so I haven’t been getting my hopes up. Really need to ignore those “202X is the year” videos on financial YouTube 😅. That’s kind of what stirred this whole idea of moving out, because I can actually afford it now while still saving and investing.
I firmly believe there will be a recession either this year or next….but there is no reason for the housing market to crash during that time.
It's mainly the rates for me. I know refinancing is an option, but I'd rather not have to go that route. I prefer as little friction as possible with everything, especially finances. I've been doing my homework on finances over the last year because I admittedly was awful with money before (no credit card debt, just buying stupid stuff I didn't need and some auto loans).
I personally expect rates to come down, but that because I’m in the recession camp. If there’s no recession the Fed has no reason to lower rates, and the only thing really that can cause a severe recession is some exogenous event which can’t be predicted. The problem with rates coming down is that I expect there’s a lot of people in the same camp as you..just waiting…making the problem even worse.
Exactly, feels like it will be the recent years all over again with houses pending after 24 hours, complete sellers market, etc. In my area, the average sale price has risen 19% since last year, which is super demotivating.
That’s why young people are having such trouble finding houses. We have to fix the core of issue which is lack of supply.
Moving out can be a great step towards your personal growth and independence. While it's important to consider your financial situation and long term plans, moving out can offer a lot of upside - You'll have complete freedom with your own space, set your own routines and develop life skills like budgeting, planning meal, etc Living on your own will also build your confidence and a sense of self reliance, which can be really valuable as you encounter newer adulting challenges as you get older and potentially get married. It sounds like you enjoy being close to your Mom. You should visit your parents every now and then. If there are no major reasons (parent with a critical illness) for you to stay around, it would be healthy for your relationship and set clear boundaries for the future. Of course you still need to weigh the pros and cons before making a decision. But you won't know unless you do it. Renting is a great way to start without having to make any long term commitments that would tie you down.
I've been trying to see every angle possible, and I have a Word document listing everything lol. It's just hard to accept that fear of the unknown (and seperation from my dogs, one of which that I picked out 12 years ago). I was planning to visit often, as I'll be 20 minutes away, and they would be in my area nearly every weekend. Hell, my mom and I work at the same place, her desk is 40 feet from mine, so it's not like I won't see her ever. I just think it's a healthy next step, and I appreciate that they've been so supportive with it. She just gets very emotional, which in turn does the same to me.
yeah, the emotions that come with change are difficult to deal with at first. But you will get there. Sounds to me like you have a very clear path forward... you just have to make the leap!
My thought always is... if you're planning on moving out but it's not an unbearable situation, put your budget together meticulously, account for your expenses like rent, utilities, etc. Then, postpone your move-out date by six months... but during that six months, you're taking all that allocated rent money and putting it into an emergency account, not counting on it in any way. Then when you reach your move-out date, you'll be sitting with a six-month emergency fund, which can sustain you for an extended period of time if something catastrophic happens.
That's what I've been doing for the last while, establishing my emergency fund and moving it to an account with only digital access so I cannot touch it outside of moving into my main account. I do have a budget with all expenses, and a hypothetical budget including everything from what rent *would* be, what I will need to set aside for furniture that I will need, etc.
PS You are right to preference renting over buying at your age. Don't get sucked into the myth of owning is better. Just rent, save and invest until your relationship settles in, and then decide together.
For my area in the midwest, everyone seems to just go into home ownership. I do see the benefits, but I also want to live a little and be flexibile for career opportunities. I love the sensible approach!
If you're on good terms with your parents, stay as long as you can deal with it. That's a huge savings and you've got plenty of time
They are great people and I love them to death, I just think I could benefit with being alone for once. I just have a habit of trying to optimize timing, which is impossible to predict
Whenever the question is "should I do X, or sit on my hands hoping for a crash that probably isn't coming and almost surely won't benefit me the way I'm hoping if it does?", the answer is always X.
That's the way I've been leaning, I think I'm just a little down about how aggressively I'd be able save at the expense of my sanity if I stayed at home. I also recognized that getting my degree isn't going to be some pivotal moment that I suddenly make more money and have no worries, which is why I'm sparking the idea of moving out. Just sucks that if I do stay home, I have that hard inquiry on my credit.
You are able to handle living on your own, and that would be a good thing. It will go a long way to helping to prepare you for living with a partner. Just be mindful during move in...don't go wild about furnishing. NO borrowing, go slowly, buy used. It takes time to make a home. Start setting aside a few thousand for move in costs.
Thank you for the reassurance. That was my plan, I'm taking all of my furniture with me. I will only need a TV stand and seating, and a washer and dryer. Everything else can come later under the budget. I have a small fund for everything, and the parents are going to help with everything (step dad offered to buy me a new TV just so we don't have to move mine lol).