I am retiring in two years. Should I buy now?

1

Pros of Buying Now:
Strong Credit Score: Your exceptional credit score (likely 800+ per FICO standards) positions you for favorable mortgage rates, potentially in the 5.5–6.5% range for a 30-year fixed mortgage (based on June 2025 national averages). Securing a loan while employed is easier, as lenders prioritize debt-to-income (DTI) ratios and stable income. Your current job strengthens your application.
Time for Improvements: Buying now gives you two years to make improvements (e.g., updates to kitchens, bathrooms, or energy-efficient upgrades) while still earning income. This can increase the home’s value or comfort for your retirement, especially in Cedar Hill, where homes often sell for $300,000–$400,000 (median ~$350,000 based on recent Texas market data).
Equity Building: Two years of mortgage payments will build equity, reducing your loan balance before retirement. This could lower your fixed costs when you transition to a fixed income.
Cons:
Carrying Costs: Owning a home in Texas while living in Pennsylvania means managing two residences (e.g., mortgage, utilities, property taxes). Texas property taxes are high (~1.8% annually, or ~$6,300/year for a $350,000 home), which could strain your budget if you’re not renting out the Texas property.
Maintenance from Afar: Making improvements remotely can be challenging. You’d need to hire local contractors in Cedar Hill or Duncanville, which requires coordination and trust. Hiring a property manager (costing ~8–10% of rental income if you rent) could add expenses.
2. Current Market Conditions in Cedar Hill and Duncanville
High Inventory: You’re correct that inventory is high in June 2025. The Dallas-Fort Worth metro area, including Cedar Hill and Duncanville, has seen a 20–30% increase in active listings year-over-year (based on Texas MLS data), with homes staying on the market longer (~45–60 days). This gives you leverage to negotiate a good deal, potentially 5–10% below asking price on homes priced at $300,000–$450,000.
Price Trends: Median home prices in Cedar Hill are ~$350,000, and Duncanville is slightly lower at ~$320,000. Prices have stabilized after 2022–2023 spikes, but appreciation is modest (~3–5% annually). Buying now could lock in a price before potential rate cuts in 2026 spur demand and raise prices.
Seller Concessions: With high inventory, sellers in Cedar Hill and Duncanville are offering concessions (e.g., covering closing costs or minor repairs), which could save you $5,000–$10,000 upfront.
Risk: If the market softens further (e.g., due to economic slowdown), home values could dip slightly by 2027, though long-term appreciation in Texas is likely due to population growth.
3. Timing Relative to Retirement
Pros of Buying Now:
Market Advantage: High inventory and stable prices favor buyers. Waiting two years could mean facing lower inventory or higher prices if interest rates drop, increasing competition in Cedar Hill’s family-friendly neighborhoods (e.g., High Pointe) or Duncanville’s established communities (e.g., Green Hills).
Transition Planning: Owning the home now allows you to gradually relocate, furnishing and improving it over two years, reducing stress when you retire. You could visit periodically to oversee upgrades.
Rental Option: If you don’t move immediately, you could rent the home to cover the mortgage. Cedar Hill’s rental market is strong, with median rents of ~$2,000/month for a 3-bedroom home. This could offset costs, though DRE regulations require a separate trust account for rental income (as discussed in your prior queries).
Cons:
Interest Rate Risk: If rates drop significantly by 2027 (e.g., to 4.5–5%), you might miss out on lower payments. However, you could refinance, leveraging your strong credit.
Retirement Income Uncertainty: Your retirement budget isn’t clear. If your income drops significantly, high Texas property taxes and maintenance costs could be burdensome. Ensure your retirement savings (e.g., 401(k), pension) can cover these expenses.
4. Cedar Hill vs. Duncanville Specifics
Cedar Hill:
Pros: Offers a mix of suburban and semi-rural vibes with access to Joe Pool Lake and Cedar Hill State Park, ideal for retirees seeking outdoor activities. Homes are newer (built 1990s–2000s), and neighborhoods like Lake Ridge have larger lots. High inventory (~200–300 active listings) means more choices and negotiation power.
Cons: Slightly higher prices than Duncanville (~$350,000 median) and longer commutes to downtown Dallas (~30 minutes). Property taxes are ~1.8–2% annually.
Duncanville:
Pros: More affordable (~$320,000 median) with established neighborhoods like Greenway Estates. Closer to Dallas (~20 minutes), making it easier to visit family or access amenities. High inventory (~150–200 listings) supports buyer leverage.
Cons: Older homes (built 1970s–1980s) may require more upgrades, increasing your pre-retirement improvement costs.

If you are already two years from retirement I personally think buying now could make sense. While you are still working you will have your income to qualify for the loan and handle any updates or improvements you want to do before you stop working. It also gives you time to get settled near your family and not feel rushed once you actually retire.
The flip side is that once you retire your income will change and all the expenses of homeownership will still be there. Taxes, insurance, maintenance and utilities do not go away just because the mortgage is affordable. That is why I would not buy at the very top of what the lender says you qualify for. I would look at something a little under that number so you are comfortable long term.
Overall if being close to family is your goal and you can budget for the monthly costs even after retirement then I think it is smart to buy now instead of waiting.

Hi Biddy,

I love the way you’re thinking ahead—two years may feel like a blink, but it’s a perfect window to set yourself up for retirement on your terms. Here’s the truth: buying now can be a really wise move, especially with your credit strong and your income still active. Lenders see stability, and that gives you leverage.

At the same time, let’s look at what you gain: by purchasing before retirement, you lock in today’s inventory and pricing instead of gambling on what the market will do later. You also give yourself space to ease into the home—make improvements, personalize it, and settle in without the pressure of doing it all after you’ve left your job.

Now, here’s the part I’d challenge you on: what if waiting costs you the chance at the right house near your family? And what if buying now gives you both a financial edge and emotional peace, knowing you’re building toward that next chapter rather than racing into it?

Bottom line—it’s less about can you buy now (because you clearly can) and more about should you pass up the chance while the cards are stacked in your favor? My gut says the wiser move is to plant those roots early, while your position is strongest, so retirement feels like a welcome homecoming rather than another big hurdle.

Yes, your plan is smart.
You have a strong credit score, steady income, and time to make improvements before retiring. Both Cedar Hill and Duncanville currently have good inventory and softened prices, giving buyers more leverage.
Right Timing: Buying now lets you secure a good deal and improve the home while still working.
Overall, buying now is a wise move. Just make sure to have a local agent help you navigate each neighborhood.

Hello there! You are correct about the high inventory, good time to snag a great deal on a house. Regarding your retirement situation based on the info you provided, Yes, buy now while you still have the current income. We can discuss further if you like. I'm in the Dallas area.

You’re in a great position to lock in a Texas home before retirement. With your exceptional credit and steady job, you’ll qualify for the best loan programs, and today’s high inventory gives you real bargaining power.

Buying now in Cedar Hill or Duncanville means you can spread any renovation work over the next two years while you’re still working—no rush, no stress. You benefit from building equity early and getting ahead of potential price gains once inventory tightens.

A couple things to keep in mind: interest rates affect your monthly payment more than home price, so watch the market and consider locking a rate when you feel good about it. Factor in property taxes in your budget (that is sometimes a shock for people relocating to TX), and leave plenty of wiggle room for upgrades