Welp. The title tells it all. I didn't buy a house during the pandemic AND that is okay. It was sad /frustrating/upsetting to come to that realization but I know I made the right choice. Have you seen what is on the market (in New Jersey) for under $200,000?! Its scary!
....You are probably thinking back, saying to yourself, she never talked about buying a house did she?! I briefly mentioned it in my Goodbye Summer (September 2020) post but I never fully explained what my process was or if i went back to it after my post in September. This is going to be that post that explains everything.
2019
When I moved back home in August, I had very little money saved and quite a bit of credit card debt; even if I wanted to move out after getting my footings, I couldn't. My parents were amazing for letting me stay with them as long as I needed to get myself back on my feet. I was sad for everything that had transpired and frustrated with myself. How did I end up like this? I knew I needed a plan and the first thing I needed to do was to pay my credit cards off. It wasn't A LOT but it was something and I knew that money would be better used if I was saving it not paying down debt.
I also knew I needed a goal, something that I could work toward. I was lucky enough to find on The Budget Mom's website a great savings tracker that was in a shape of a house. PERFECT! This was something visually I could look at a see my progress and what I still needed to save. I started to save a a specific amount each paycheck, but there were some months that I couldn't reach that specific amount so the set amount varied. I was really proud of myself of what I had saved (thanks to my parents) over the course of 4 months.
2020
Towards the middle of 2020, I got this idea I wanted to start to look for a house. At the time, the house prices weren't as bad as they are now in 2022. I had this mindset that I wanted to do it on my own, which meant I would be continually struggling. My parents did not want to see me struggle,.
In June, I started to look for houses, for real. I got a mortgage broker and a real estate agent. I went to see 2 houses, looked at 100's of them on Zillow/RedFin/Realator.com. A lot of them were ramshackled and a mess, that needed more work than I could ever afford. What surprised me most was, a lot of them pending after only a few hours of being on the market. I felt hopeless and it seemed like everyone was able to buy a house at that moment and I wasn't.
After a month of looking , I felt frustrated and decided to pulled back from the active search but still actively looking on Zillow/RedFin/Realator.com. By early October I decided to stop looking completely. I finally came to terms with that I realistically do not have enough money saved to be able to purchase a house then furnish it. I need to save more money to purchase a home and I need to build up my emergency account as well.
I wanted at least one good thing to happen in 2020. I had high hopes that 2021 would be the year for me to buy a house.
2021
Going into 2021, I tried to remain optimistic and kept saving everything I could. Again, I am so thankful for my parents to give me the opportunity to live at home while I consistently save for a house. I tried again summer 2021, looked at 3 properties but the prices were outrageous. This is when I realized that last year was probably the best year to buy because things there were actually decent were in my price range but I wasn't ready financially.
For example, I looked at a small condo in 2020 it was $134,000. The same development and almost the same condo in 2021 was close to $180,000 and some of them were selling for $190,000. Nothing was extra special about them and a lot of them needed a lot of work in addition to what you were already paying.
After the Summer, I again, decided to take a step back, save more and re-evaluate again next Summer.
By the end of 2021, I had filled in 3 of those neat house saving trackers and I was really proud. I am so happy I found it because it gives tangible proof that you are saving a lot and its a nice visual. My hopes are to frames these trackers and hang them up in my house to remind me how hard I worked for this.
2022
Here we are 8 months into 2022 and I have not looked a house with the intent to buy all year. I can't remember the last time I spoke to my agent and that mortgage lady I spoke to last year, we didn't jive.
I have perused a few times to see what's out there since there has been talk that the house prices are starting to drop. I am still saving as much as I can and praying for the perfect house to come around. I am not putting pressure on myself to buy something because I want it, I want to buy it because its perfect for my needs AND I am able to comfortably purchase it.
I am on track in a few months to finish up my 5th house savings trackers and I couldn't be more proud of myself. I have really stuck with this savings goal since August of 2019. I may be slow to start but I feel like once the perfect moment comes around, I will be ready for it and it will be awesome.
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Are you a first time home buyer? How has it been for you? Let me know in the comments below.
[[A house is a home when it's filled with love]]
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