We are in a volatile economic market, so is it a good time to make a major purchase? Most of us will want to hold on to what we have in the bank because we don’t know what the future may bring. Even if we have a bit in our savings we could use to make a major purchase, the majority think that is an unwise financial decision. Experts today disagree saying that spending during this crazy economic storm could be a smart move when it comes to your finances. Here are eight different major expenses to think about.
Is now a good time to get new furniture?
Both inflation and supply shortages have greatly hindered the furniture industry. The delays stem greatly from the slow workforce recovery and the high prices. Those in the furniture industry say that home furnishing prices have risen around 10% this past year. Hopefully, the prices will return to a good value in the near future. So if you can wait, then wait to purchase any furniture for your home.
Is this a good time to downsize your home?
Even with the high home prices and low inventory, this might not be a bad time to downsize. The record-high prices are coming to an end. According to CoreLogic, price increases have slowed since June 2022 but are still up 18% from a year ago. Even though prices are high, if you are downsizing, this could work to your advantage. Scott Lindner of TD Bank, says that you can sell your larger home for a higher price, and still come out okay because you are downsizing to a smaller home even if it is a high price per square foot.
Is it a good time to make renovations to your home?
According to Houzz, 2021 saw a four-year high in spending on renovations and remodeling properties. Homeowners are staying put and updating the home that they are in. There is a downside because of supply chain problems and spiked construction costs.
“Waiting will give you a chance to find somebody who does good, thoughtful work and can find products and materials that make you happy,” Craig Webb, a construction supply industry consultant adds. “Doing it in the future might not be much cheaper, but it may tax you less mentally.”
This is a good time to purchase if you are in the market for a primary or second home. Contact a local sales agent who can help you with the home-buying process.