Home buyers deciding not to buy

There’s no way to avoid the fact that it’s a hard time to buy a home. Prices are high, but, more challenging is the level of competition for the limited number of properties available. With multiple over-asking bids in most cases, many buyers are discouraged. Several of my buyers have suggested just “waiting until the market balances out and it’s not so competitive”. While I understand that sentiment, my response is always, “Ok, what are your other options?”

While some decisions can be tabled temporarily or even long term, securing housing is rarely one of them. My advice to my buyers is intended to help them identify what housing choices they have, if they choose not to buy.

1. Stay where we are. This may be a totally viable option and, if it is, deserves strong consideration. If you cannot work remotely and need to move for a job, or your lease is ending and you can’t renew, for example, you may not be able to stay.
2. Rent–what’s available? This is one I hear a lot. And it’s not a bad idea….unless there are no rentals available that meet your basic requirements. Pets, for example, can be an issue. If you have a large family and can’t find an apartment that can accommodate you, you may well discover that there are very few single family homes available. If you have children in public school, moving into a rental in another school district will necessitate a change in school. The other thing to keep in mind about renting is the cost. Just as housing prices have soared the last couple of years, residential rents, on average in this country have increased year on year by 22%, which followed a year of similar increases. That steep hike means that the monthly cost of renting may be more than what a would-be-buyer-turned-renter can afford. Additionally, you should carefully consider the total amount of dollars in rent that will no longer be available to use toward a down payment or closing costs if it is spent on rent.
3. Stay with family or friends. This choice falls under the category “If you’re lucky enough to have this option”, think about it. Clearly, deciding to move in with people you love can be a mixed bag; wearing out your welcome or trying to manage different habitation styles can put a strain on relationships. Additionally, there may be some monetary contribution as food, utilities and other costs will increase for your host.

Again, this housing market is not for the faint of heart (or weak of finances). It’s perfectly understandable that some buyers would not have the stomach or ability to compete in it. However, deciding you don’t want to pursue a purchase means you have to do something else to be sure you have a place to live. While buying may not be a lot of fun, it may still be the best choice. You can’t make a choice in a vacuum–instead of couching it as “I don’t want to buy right now”, reframe it as a question: “If I don’t buy, now, what will I do for housing?” Then you will be making a decision from an informed position.