Should You Buy Your First Home in an Insane Market, or Wait it Out?

Feeling anxious that you’ll never get into a house of your own? Here’s how to beat the FOMO in 4 simple steps.

1) Step back and take a breath. Remember, this is probably one of the biggest financial decisions of your life, one with lasting consequences. You want to be reasonably sure that this is what you want before jumping into a frenzied market.

2) Reassess your motivation. Do you have to move out of a place you hate before the lease runs out, or would you be okay staying where you are until the market calms down? You need max motivation to win the house in today’s market.

3) Understand that markets change. Though the whole idea of buying a house after last year’s insane runup may seem daunting, markets always take a pause at some point after. Today’s market is already starting to loosen, and patience pays.

4) Make a decision. If your motivation is high, then keep making offers. But if you’re tired or frustrated, then it’s okay to stop and wait, see how things shake out, and step back in again when your need is more pressing.

When I started thinking about buying my first house, it was 1988-89 in Silicon Valley.

I was about to get married, and the market was insane.

People were overbidding, waiving contingencies, and competing frantically to get into anything. I watched co-workers suffer through the process, and thought I’d never be able to get in as I watched prices shoot through the roof.

So my partner and I kept working, saving, and watching the market. In 1990, the landscape started to change. More houses came onto MLS, multiple offers dwindled, days on market increased, and by the time we made our first offer later that year, the market was noticeably less hot.

In 1991, we made an offer on a reasonably priced house for 15% less which was actually accepted—a fantastic deal for us.

Over the last 30 years, I’ve seen markets pause time and time again, and sharing long-term perspectives like this is one of the ways I help my clients beat FOMO.

If you want to go from renting to owning with clarity and confidence so that you can build wealth, control your environment, and enjoy the comforts of home, comment below, send me a DM, or book a free Zoom call.

About Diane Cohn

Diane Cohn runs a mastermind for female breadwinners who want to go from renting to owning with clarity and confidence so that they can build wealth, control their environment, and enjoy the comforts of home. A prior top-producing Realtor, real estate industry marketing executive, and housing market commentator on YouTube, she has profitably bought and sold property in every kind of market over 30+ years.