One of the top questions and concerns I received from clients is simply "When is the right time to buy a house?"

It's hard for two reasons to buy a house right now. Just being honest with you. Prices have gone up over the last couple of years through all of COVID. Epically low rates have caused a surplus of buyers to enter the market which drove up prices. Now we've run out of houses. We have not nearly enough houses available for how much buyer demand there is. Even though rates are high, there are so few houses to grab that that's driving up property prices. That's the other thing. Rates are higher than they've been in a decade. One would have expected that to lower the sale prices because if it's so much more expensive to borrow, then that should technically erode the value of houses a little bit. There are so few and there will be so few houses available that it hasn't taken a single bite out of property value.

In fact, Wisconsin continues to print positive appreciation numbers year over year. So the ultimate question, when is the right time to buy? Really, there are  three questions you should be asking for you and your household:

Can I afford it right now?

What if rates never go down?

Can I still afford it forever? If the answer is "Yes.", that's a start.

109 economists were recently surveyed and the average expectation of appreciation is 13.4% over the next five years. A $250,000 house should be worth about $290,000 in five years time. These economists are our nation's smartest numbers, people. They're the chief economists of different institutions. They've got probably over 109 doctorates, you know, over the lot of them. They live in numbers and they are expecting a high appreciation.

Next thing, how long will you stay over any 10 year period? Over the last 80 years, property values have always risen. Yes, there were a year or two where property values dipped and then went up again. But if you look at any 10 year span, anywhere you look, property values always went up over that 10 year period. If you're holding a house long enough, it's almost statistically guaranteed the property values will rise during that time, you most likely will get a return on your investment.

Finally, does it fit with your other financial goals? After doing the 3 to 20% down payment that most buyers do, will there still be room for other things in your life? Consider- an emergency savings account, a college savings account, retirement, this mortgage payment you're signing up for... is it the same or less than rent that you're paying? Will this house build wealth for your family? We'll talk about that in a buyer consultation. Will this be part of your retirement and eventually and the equity you build? Thanks to appreciation and then also paying down your mortgage.

Don't forget that buying a house isn't just an investment. It's also a place where you're making memories, you're making it your own, you're feeling safe, and comfortable, you can customize it. There is a bona fide emotional fulfillment out of purchasing and owning a home. I can speak for myself. I'm standing in mine right now. Don't hesitate to reach out, but those are the three big questions I'd ask and the mental process I would follow if I was deciding when the right time to buy a house for my family.