Part 9/12:
- Seller motivation
Higher mortgage rates typically reduce demand, cooling prices, whereas low rates can trigger bidding wars. The COVID pandemic has shifted demand, but rising interest rates and economic uncertainties are tempering the market.
The Key Takeaway: Buy What You Can Afford
Your goal should be to buy a home that you can comfortably afford, which allows you to invest and save simultaneously rather than sacrificing your future wealth to own a bigger home.
Avoid maxing out your borrowing based on bank guidelines.
Prioritize a pay-yourself-first philosophy.
Be prepared for additional move-in costs and ongoing home maintenance.
The Broader Economic Picture and Future Risks
Current economic indicators signal caution: