8 Reasons I'm Not Buying a House This Year

For much of 2020 and 2021, buyers were clamoring to purchase homes. And I really wanted to be one of them. Although I don't plan to move from my primary home, I would really like to purchase a second home to use partly as a vacation spot and partly as an investment. But I'm putting my plans to buy on hold this year for a number of key reasons.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Home prices are sky-high on a national level. And that extends to the area I'd like to buy in. As such, I'm not particularly motivated to buy a home right now -- not when I expect prices to come down in the next few years.

There's not a lot of available inventory on the housing market, and that means there are few homes to choose from in the area I'm looking. Now, I'm willing to be flexible and compromise on certain aspects of a home. But there's a limit as to how many concessions I'm willing to make, and in a low-inventory environment, the likelihood of finding a home I love is lower.

Mortgage rates are still fairly competitive, historically speaking. But they're already way higher than they were in 2021. And they're no longer low enough to make up for higher home prices. I don't necessarily expect mortgage rates to come down -- but I do think home prices will, which is why I intend to wait.

Because there aren't many homes on the market, if I make an offer on one, there's a good chance I'll end up having to face off against a competing buyer. And that doesn't sound fun. Bidding wars can be stressful, and they can cause you to overspend on a home. That's a scenario I'd rather avoid.

ALSO READ: 3 Bidding War Strategies to Use in Today's Housing Market

In today's housing market, cash buyers have a key advantage. But I don't want to purchase a second home in cash. Doing so will mean tying up a ton of money in an asset that isn't very liquid. And so, I'd rather wait until inventory opens up and fewer buyers feel compelled to purchase a home in cash.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Property taxes could be much higher in the near term due to inflated home values. Owning a second home is an expensive enough prospect, so I don't know that I want to do so at a time when I might also face a larger-than-usual tax bill.

ALSO READ: How to Appeal Property Taxes

Like many investors, my stock portfolio has taken a hit this year. That means selling stocks to free up cash for things like furniture and home improvements is off the table. In light of that, I'm not sure I want to take on the expense of having a second home.

Would I like to purchase a vacation house? Yes, absolutely. But am I desperate to do so this year? Not at all. There's no compelling reason for me to buy that home this year as opposed to a year or two down the line, so I figure, why force myself to become a participant in one of the toughest housing markets buyers have ever had to deal with?

Buying a second home doesn't seem to be in the cards for me this year, and that's okay. The reality is that whether you're looking for a primary home or an investment property, it's really just a tough time to buy. And so, I'd rather wait things out than overpay for a home or end up settling for a space that doesn't really check off the right boxes.

The Motley Fool has a disclosure policy.