Dave Ramsey is well known for being a personal finance expert, but did you know real estate is one of his favorite and most trusted investments? Even in this shifting market, Dave Ramsey is telling anyone who will listen, “Buy now and refinance later!” For those looking for a better deal in real estate, now is the time to make a move because home prices are dropping and buyer incentives are abundant.

Investing in real estate is a great strategy to increase your net worth. It offers an attractive combination of historically high returns, passive income, and the ability to protect against inflation and stock market fluctuations. Real estate may be the most secure, reliable, and straightforward way to amass wealth and can be a route to financial freedom if you adhere to appropriate strategies. Check out why Dave Ramsey thinks this is a great time to buy.

Dave Ramsey’s Top 5 Reasons To Buy a Home This Winter 2022/2023

1. Home prices have decreased.

Compared to the spring, homes are less pricey. The asking price of homes is finally being lowered and Buyers now have a variety of homes to choose from. The greatest time to purchase property and start building wealth is NOW! Some say they'll wait for prices to drop further. However, according to Dave Ramsey, prices won't continue to decrease significantly this winter but instead, they will soon rise, albeit more slowly than in the past few years.

2. Buy now, refinance later.

Real estate is a long-term investment and the outlook shows that home prices are expected to rise over the next five years. History shows that home values consistently rise 2-3% each year. Double-digit increases (like we’ve experienced the last few years) are not normal and are not expected to return. We may be experiencing the best prices now and it won't become any more affordable in the following years. Dave Ramsey advises purchasing a home now despite rising mortgage interest rates. As soon as interest rates start to decline again, you can refinance the mortgage. Waiting to buy when the interest rates decrease means losing out on equity. At the risk of being cheesy….Marry the house, date the rate!

3. Fewer homebuyers and more supply.

Winter months bring fewer Buyers to the market, which means slower sales and inventory stays on the market longer with the cooling weather. This implies that you will have more choices and face less competition when making an offer on a house. Both the Buyers who are shopping and the Sellers of these homes are taking their business seriously by virtue of being on the market during the winter. Moreover, you'll have more negotiation power on the offer price, Seller-paid closing costs, and repair negotiations. The bottom line, while inventory is still relatively low, there are more homes on the market than we've seen throughout.

4. Location affects property values.

As the market is shifting, you have a chance to study different neighborhoods, rather than having to jump at any home that hits the market in your price range. As a rule, don't purchase the most expensive home in the neighborhood. The ideal scenario is to buy in the lower price bracket of a well-established community. The value of the smaller or lower-priced homes will be drawn up by the surrounding more expensive homes. This will certainly help with appreciation over the years and equity growth, which will set you up for success when it’s time to sell in the future.

5. Take your time in making important choices.

Homebuyers have the luxury of being more cautious for the first time in many years. The hot housing market has come to an end for now. The process of purchasing a property is often drawn out and complex. Although it could be alluring for some first-time buyers to act quickly as soon as they see a home that they love, making a hasty decision could compromise your chances of considering all your options. Slowing down is an excellent rule when choosing to purchase a home. Take the time to review the neighborhood market stats and the features of the home. Make these critical decisions thoughtfully so you feel confident about your long-term investment.

The Crucial ‘What If’ Question: If I buy now, will the market crash after Winter 2022/2023?

Although housing economists concur that prices could decrease through the winter, they won't drop drastically. Make decisions based on actual facts. Housing inventory is still relatively low compared to demand. Trends in the demographics are constantly producing new Buyers; population growth has far exceeded new home building, and there are very few homeowners foreclosing on their mortgages. A "Housing Market Crash" will not happen, so if you're in a position to buy or sell, take advantage of Winter 2022/2023.

Did you know the Dave Ramsey team selected Carey to be a RamseyTrusted agent in Portland, OR? RamseyTrusted is a place for folks to easily connect with top-notch, principled service providers. Both Buyers and Sellers need professionals they can trust during the buying and selling process. Carey was selected for her consistent 5-star reviews and her commitment to service. Send us a message if you want help determining if Winter 2022/2023 is the right time for you to make a move. You can rely on us to be here for you by sharing professional insight and relevant market data at every turn. We offer supportive guidance so that you can make confident decisions to achieve your housing and financial goals.