15 Reasons You Should -- and Shouldn't -- Buy a Home in 2022

Today's housing market is a tough one to navigate. And you may be wondering whether buying a home is something worth doing in the near term in light of that. Here are a number of reasons you should -- and shouldn't -- purchase a home this year.

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Mortgage rates have risen sharply since the start of the year. And as the Federal Reserve moves forward with planned rate hikes, borrowing for a home could become more expensive. You may want to buy a home now before rates climb even more.

ALSO READ: Current Mortgage Rates: Still Competitive Today

If you're currently renting a home, you're not building equity in a place of your own. And if you're tired of paying a landlord's mortgage instead of your own, then buying sooner rather than later makes sense.

ALSO READ: Why Home Equity Loans Beat HELOCs in 2022

Home prices are definitely up these days. But if you can swing a sizable down payment, you may want to move forward with a home purchase and start building up equity in a place of your own.

Right now, there's a big shortage of homes on the market. But the area you're looking at may have more inventory. If that's the case, you may have an easier time buying.

The benefit of purchasing a home in an up-and-coming neighborhood is getting in while prices are still affordable. But if you see your target neighborhood getting increasingly built-up, you may want to move quickly on a home purchase -- before you're priced out.

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Home prices are high right now on a national level. But we don't know what the future has in store. If inventory remains sluggish, home prices could rise even more, despite borrowing having gotten more expensive. And so, you may not want to take that risk.

Some buyers are inclined to put off their home purchases until real estate inventory improves. But we don't know when that will happen, and it may not happen for years. And in that case, you may not lose out on much by purchasing a home this year.

ALSO READ: Why Everyone's Making Such a Big Deal About Housing Inventory

Some people buy homes to occupy themselves, while others use them as a real estate investment. If you're in the latter boat, it could pay to purchase a home this year, even if that means paying up. The demand for rentals is strong right now, and so you might make up your money by charging higher rent than usual.

ALSO READ: How to Invest in Real Estate: A Complete Guide

Most people can't afford to buy a home in cash. But mortgages have gotten expensive. And while borrowing rates may not drop this year, they could become more affordable in a year or so.

Home prices are sky-high across the country. If you buy a home this year, you're likely to overpay, and that could lead to a scenario where you're forced to take a loss if you wind up having to sell your home within a few years.

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A lack of housing inventory is driving home prices up. Not only that, but limited inventory means you may not find the type of home you want. If you wait to buy, you may find that you're able to snag your dream home rather than settle.

Financial experts have been sounding warnings about a potential recession this year. If economic conditions worsen, job loss could be widespread. And so, buying a home now means risking having to manage your housing payments at a time when you may get laid off.

ALSO READ: Suze Orman Thinks a Recession Is Imminent. Make These 3 Moves to Prepare

You may be excited about your new job, but are you sure it's the right fit? It's a good idea to be settled at a job before purchasing a home. So, if you've only been at it for a short while, it could pay to put homebuying plans on hold.

Right now, living costs are soaring due to inflation. And at a time when you're paying more for everything from gas to groceries to utilities, you may not want to take on the expense of a mortgage, property taxes, and other costs that come with buying a home.

ALSO READ: Could You Reduce Your Property Taxes in 2022?

It's one thing to jump into homeownership to escape a rental that's small or expensive -- or both. But if you like your rental and the price is right, it could pay to wait out this tough housing market and attempt to buy a place of your own in a year or two. At that point, conditions may be more favorable to buyers.

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The decision to buy a home this year versus wait is a tough one. Do your best to weigh the pros against the cons so that you wind up happy with the route you take.

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