WIth increased mortgage rates, their monthly payments would likely be the same now, even with a lower house price.
Exactly.
We’ve learned to not jump houses but to stay in one for an extended period of time. This assumes, of course, that you don’t have to move for job or family reasons.
If you buy a house and know you can make the $3,000 mortgage payment each month, then you can still make that payment if the house price drops. Assuming, of course, you don’t lose your job due to BidenRecession.
We’ve weathered three or four 10% to 20% declines in house value, but it has always recovered. Just take a long view and count on the market recovering. Plus figure out how to improve your skills and marketability to a new employer if your current one hits a rough patch.
The key for a first time buyer is to put down at least 20% (which avoids PMI) and put off cosmetic improvements and furniture purchases until you have cash to pay for them. I see too many young first time buyers run up credit cards to get the house perfect and that will almost always put you in a bad situation. You might have to live with old lady wallpaper, outdated appliances and ugly furniture for a while. The main thing is having a solid house to live in and a rainy day fund for the critical repairs that will inevitably be necessary.
Taking out equity loans or borrowing from your 401k to make cosmetic improvements is always a mistake.