This is a YouTube video titled "Paying More Now can Help you Later 😨 #homeloans #firsttimehomebuyer #mortgage #homebuyer" created in February 2024. It features Noah Kagan discussing real estate market trends, advising potential homebuyers on why paying slightly over asking price might be financially beneficial in the current market conditions.
Looking to purchase a new home in 2024, here's a couple things you probably should know. Sometimes paying a little bit over asking price actually might be the best financial decision. Let me explain. So even during the tough 2023 real estate market, home prices still went up about 6% over the course of last year. That's about a half percent per month on average. The outlook for 2024 is more positive. They're probably going up at least that much, but we'll just say 6% for the year. That's a half percent per month. Now, 26% of homebuyers today are purchasing houses over list price. So that means they're catching on to the secret. More buyers are flooding back into the market. In a normal market, we have about homes available right now, we only have a half that across the country. So supply and demand are all out of whack. That's what's forcing people to pay a little bit more. But if you wait and try to find another home, it could take months to find something comparable. And with home values going up About a half percent per month, a $400,000 house today is going to be 402, 404, 406 in the next three months. So you very well could pay even more by waiting, and you miss the opportunity to get into your new home, get the benefits of that and the benefits of gaining equity. So sometimes paying a little bit more actually saves you in the long run.
