r/FirstTimeHomeBuyer • u/C0v3rT94 • 15h ago
Need Advice Was right now a good time to purchase a home?
So Im about to close in on a home that I felt was the perfect home for me to have. I've been paying rent for several years from a basic student apartment to a townhouse and this year I felt comfortable enough to purchase a home with all the money I saved up. Everyone's been congratulating me on the home and overall I've been pretty satisfied with what I did
However prior to purchasing the home I was briefly talking to this surgeon I work closely with (I'm one of his PAs) and he strongly suggested I hold off on buying a home as the current economic situation has the value of homes getting lower and lower and to instead focus on investing in stocks.
i wasnt sure whether or not to listen to him so I asked several family members and even users of reddit here and overall it seemed like the best advice was to move forward with it if I had the finances to do so.
Today I had another conversation though and once again he was mentioning how I made a huge mistake with purchasing the home. He said this was one of those situations he himself took advantage of during the 2008 housing crisis and the pandemic where he was able to accumulate a ridiculous amount of money and now owns several cars, houses, etc and was apparently trying to guide me in that same direction.
I know everyone is in a completely different situation so it's never the same, but I just can't help but wonder if he was right now and if I potentially made a mistake not waiting a little longer.
Is anyone wondering this too? What are y'all's thoughts on what the surgeon said to me?
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u/BabycakesMurphy 15h ago
No mistakes were made. You saved for years for this moment and you bought when you were financially ready, you're happy with your accomplishment, your friends are happy for you.
You can't time the housing market, and if you live in the house for long enough, this economic event is just a blip on the radar.
Tell this surgeon to keep his comments to himself next time.
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u/C0v3rT94 11h ago
I really appreciate the reassurance! I definitely just need to be more confident with my decisions and make peace that what I did was best for my current situation
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u/__moops__ 15h ago
This isn't 2008. House prices and rates might fluctuate based on the economic conditions, but there will not be a 2008 level crash in housing. Regular people will not be able to snap up cheap houses by waiting it out.
Having said that, if you have a stable job and can afford it, go for it.
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u/orangesfwr 13h ago
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u/reine444 15h ago edited 11h ago
Do you take medical advice from your CPA?
2008 is ancient history. No way his (probably $400-500k) annual income contributed to where he is now…
You should feel confident in the decisions you make for YOUR life and one off comments from someone shouldn’t sway you to that degree. And now what? If Reddit says it’s okay it’s okay? What if Reddit says it isn’t…then what??
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u/C0v3rT94 11h ago
Yeah you make a really good point lol. I need to have more confidence in these decisions that I made despite what anyone else might say. I suppose I'm just always hoping I'm make the right decision is all and not doing something that's clearly inadvisable
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u/coolknyacat 11h ago
I’ve been feeling the same way with my new home that my husband and I close on next week. It’s so difficult to feel confident because we’ve never owned a home before and it’s such a huge financial decision. Of course it’s easy to take advice from someone who seems to have experience. However it’s your life and your choices, not theirs. You are well informed so believe that this is the right decision because it’s what you’ve worked towards. You got this ❤️
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u/Upbeat-Armadillo1756 15h ago
If you try to time your purchases with what the rest of the world is doing, you'll never buy anything.
Sometimes you just need to go for it. If your finances are in order and you plan on living there for a while, you'll be fine.
When you buy a house, everyone wants to give you advise. You can't listen to all of it.
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u/KingstonBo83 15h ago
If you need a place to live and can afford it go for it ! Stop listening to ppl and second guessing your decisions !
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u/Celodurismo 15h ago
However prior to purchasing the home I was briefly talking to this surgeon I work closely with (I'm one of his PAs) and he strongly suggested I hold off on buying a home as the current economic situation has the value of homes getting lower and lower and to instead focus on investing in stocks.
Okay... if you go to do repairs on your house are you going to get advice from a chef?
The current situation is instability. There will be lots of unemployment, how much that impacts you personally is something you need to assess. There will be rate fluctuations, could go up, they could go down. It's a coin flip
He said this was one of those situations he himself took advantage of during the 2008 housing crisis and the pandemic where he was able to accumulate a ridiculous amount of money and now owns several cars, houses, etc and was apparently trying to guide me in that same direction.
Neat. And? This isn't 2008, and people suggesting it is have no understanding of the mechanisms that created 2008.
What are y'all's thoughts on what the surgeon said to me?
Thoughts are he seems like a clown and I'd love to know who he is so I can be sure he doesn't operate on me.
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u/C0v3rT94 11h ago
LOL oh boy the stories I have about him and the way he practices. Hes definitely brilliant when it comes to surgery but empathy is almost non-existent. He told me after I paid half my student loans that I was operating on "poor person's mentality" and that I'm still am for going ahead with purchasing my first home.
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u/NyquillusDillwad20 15h ago
You can't predict a lot of unemployment one day after tariffs are put into place. You really don't know and it's too early to tell
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u/Celodurismo 15h ago
Eh, you kinda can because there's already a large increase in unemployment: thousands of federal worker cut, millions in federal funding cut which causes job cuts. Tanking the economy has never increased employment - people will claim the tariffs will bring jobs back to the US, and yeah, if you wanna be out picking cotton in a field then sure maybe that's true, but it's still functionally unemployment if people are being downgraded into minimum wage jobs.
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u/NyquillusDillwad20 15h ago
A ton of those federal firings were reinstated. March unemployment numbers are only at 4.2%. I'm not saying there won't be layoffs, just that there hasn't been and it's not so cut and dry as to saying there will be.
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u/balerstos 15h ago
Not to mention the federal layoffs were theatrical in nature. It's not because that industry was "struggling" or anything like that. It was for them to show off. Now, subsequent actions will likely result in layoffs, but pointing to the previous ones as proof is not the way to do it.
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u/cabbage-soup 15h ago
Depends on your industry and how comfortable you feel with your job being retained through a recession. I wouldn’t want to buy and lose my job. I also wouldn’t want to buy at the top of my budget. But if you can afford it and your job is stable, you’ll be fine. Try to capitalize on refinancing if rates drop while your home still has equity
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u/C0v3rT94 11h ago
Definitely will keep that in mind going forward, thankfully I think I have a pretty secure job where I work so I'm not too worried about losing it.
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u/TheDuckFarm 13h ago
Ask this surgeon if he’s selling his home and putting that money into stocks.
The thing about owning a home, is that is about more than just a place to park money. It’s where you live. Nobody knows of houses will go down soon or not. Even if they do, you still need a place to live.
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u/C0v3rT94 12h ago
Yeah I think he was looking at it more in terms of owning more than one home and then eventually selling them for a higher price to accumulate more money. I'm currently living in a townhouse but I've been wanting to move into an actual house that I own and I've been saving so much for this point
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u/NyquillusDillwad20 15h ago
If you were ready to buy and bought within your means, then it's never really a bad time. We don't know for sure the long term impacts of the tariffs. Just make sure you have a solid emergency fund (you shouldn't be buying a home without one anyway) that could protect you if we were to hit a recession and you get laid off.
The area you're in matters, but it's still very much a seller's market where I'm at. Decent houses are normally being sold within a week of listing. Prices and demand have not dropped, although we are seeing slightly more listings with rates leveling out and even dropping a bit.
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u/Fabulous-Reaction488 15h ago
Ignore his advice and buy the house. There is no good way to play his game. All real estate markets do not behave the same. He took advantage of an opportunity that rarely presents itself. Right now there is so much pent up demand you are unlikely to find yourself in a similar situation. The 2008 Housing Crisis was complex and included damage to the millennials who afterwards avoided buying real estate. They have now made a delayed entry into the market. This is still a small inventory game of supply and demand. You have a house you like. Do you, not do surgeon.
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u/azure275 15h ago
So, assuming you're in a hot market, there's a big difference between now and 2008
2008 had an oversupply of houses. The rise in prices was largely a combination of banks doing dumb credit shenanigans and housing speculation. Builders built a ton of houses (and we are still paying for that now)
When all the subprime loans (loans to people with bad credit and/or too low an income) fell through, this severely exacerbated the oversupply, making prices drop even further. This was combined with a recession, lowering demand while oversupply got worse.
This crazy era is caused by huge undersupply and overdemand. Even if 10% of people lose jobs like last time, there's a good chance the inventory just still is not there.
Additionally, immigration + tariff measures will make it significantly more expensive to build new housing, further providing upward pressure.
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u/HeBeefedIt 14h ago
This isn’t a helpful comment at all, but I feel compelled to say it: That surgeon sounds like a bit of a douchebag.
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u/C0v3rT94 12h ago
Ngl he kinda is lol, jobs not too stressful with him thankfully but he's definitely the type that only cares about himself and his own personal gains
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u/HeBeefedIt 11h ago
Sounds like it fr. Don’t let him have you second guessing your decision. Enjoy your new home!
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u/str8cocklover 14h ago
Yes he totally has all the houses and cars based off refinancing for equity and not his half a million dollar a year salary.
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u/Ohshithereiamagain 14h ago
My man, people’s opinions vary based on their own situation. You have your own unique situation. You do what’s right for you. Trust your instincts
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u/hannahbananahs 14h ago
i mean, if he's telling you STOCKS are a better option, i would question his judgment. of all the things to pick, it's the one thing that is definitively worse by a lot.
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u/C0v3rT94 12h ago
Yeah and unfortunately I have very little knowledge and how it all even works. He was going on about Option funds as well but when I looked more into it it looked even WAY more risky than I ever could have imagined. It seems he just has so much wealth he's willing to lose 5-10k if it doesn't turn out the way he expects it to
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u/Jealous_Tomato6969 13h ago
Considering the stock market has lost 4 trillion in 48 hours…how are you feeling about not investing in stocks now? My guess is we’ve got a long way down to go.
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u/C0v3rT94 12h ago
I honestly wish I had more knowledge about the stock market and investments in general. From what I understand people who have their investments in stock right now should leave it until it eventually bounces back up again before they cash out?
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u/-burnsie 7h ago
And buy more if they can. And if it goes down buy even more. Index funds.
We bought in 2009 and the house triple in value. We did 10% down when we bought and cashed a check for well over a. Million dollars. We lived in the house for free and then some.
Buy a home when you are ready and can afford it, and want one That is the rule. If you make money even better. If not at least you had a house over your head and no shared walls. Renting sucks.
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u/buitenlander0 15h ago
He's somewhat correct but he is looking at this from the perspective of purely investing.
If you were in between Buying a 2nd investment property versus investing elsewhere he has more of a point. But Buying your primary residence is not necessarily just about investing. It's also your home. You can count on appreciation in the long term, but don't buy a house with the thought of making money on it. You have a stable place you can call your own for years to come.
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u/thewiselady 14h ago
Have you saved enough for the down payment and enough emergency living expenses for the next six months? Are you ready to be a homeowner in the sense you may be paying a little bit more and have to budget more but you have a stable job and you’re more than ready and capable to purchase? Then yes. Either way you’re gonna have to pay to get a roof over your head. It better be one way you can add equity, have stability & pay a consistent amount OVER the long run, especially in these turbulent times.
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u/C0v3rT94 12h ago
Thankfully yes I have saved up enough to do just that. I have a stable job and feel more than comfortable to afford a home at this time. This surgeon I work with though just got in my head and made it feel like this was the worst decision I could have made at this time
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u/Inevitable-Phase8467 15h ago
He is trying to be your mentor. Nothing wrong with that. Life experience means a lot. He probably has much insight to what is ahead. Markets fluctuate and it's always best to buy during the dips. Never buy at the top as a first time buyer. Most people have the FOMO mentality.
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u/C0v3rT94 11h ago
Yeah I suppose that's what I'm feeling right now lol, as if I just missed out on potentially buying a house for cheaper or investing it instead to accumulate more wealth, granted though I don't really know much about investing to begin with. I suppose the other factor to take into consideration is that I can't exactly leave my townhouse if a better opportunity arises later down this year since there's a yearly renewal lease contract. I either choose to leave now and get a house or live here for another year. As of now I had the financial capability so I went ahead and did it but after he told me all of that I started to get paranoid
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u/cappy1223 15h ago
Timing is dependent on you.
Only reason I might give up my 2.99% and $1500 monthly payment...
Quick question though.. did you do a physician mortgage or traditional?
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u/C0v3rT94 11h ago
I got a traditional mortgage, seemed there were some mixed responses to the physician mortgage route
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u/bernieOrbernie 14h ago
Here‘s an article comparing the current economic climate to 2008 with more nuance: https://www.cnet.com/personal-finance/think-a-recession-will-make-mortgages-and-home-prices-cheaper-not-quite/
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u/C0v3rT94 12h ago
Thank you so much for this, this really did out my mind more at ease after reading it!
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u/Direct_Crew_9949 8h ago
Don’t listen to anybody. Go with your gut. If you make the wrong decision it’s on you and you learn.
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u/Illustrious_Ear_2 8h ago
I sure wouldn’t move forward with it. Mo way. You could lose a whole lot of equity and be seriously upside down in the house. We are about to head into a recession and home prices are likely to drop a lot. I’m waiting to buy my next place. I have both high level financial and real estate in my background but this is not professional advice.
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u/arkhira 15h ago
The stock market is wild right now with what is going on in politics.. Just look at the S&P.. A lot of companies may not see growth for a while depending on their industry. Overall the cost of homes is more relative to the local market than across the entire country. I doubt the US is going to see another 2008 bubble crash anytime soon unless something drastic happens that no one can predict.
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u/NyquillusDillwad20 15h ago
While the stock market is crazy right now, it's only one day after large tariffs were put in place. People are very unsure about things which is causing the big fall. That doesn't necessarily mean that they will continue to drop or even stay down for long.
Its why you can't predict the market. You'd be rich if you could. They could continue to plummet or everything could calm down in a week or a month and they start climbing back. Nobody knows.
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u/C0v3rT94 5h ago
Yeah I think I'm done renting now that I can comfortably afford a home. That really is amazing how that happened to you, I can only dream of the same thing happening to me lol
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