Should You Buy a Home Now or Wait?

Are you wondering whether to buy a home now or wait? It's a big question on many people's minds today. While the right timing depends on personal factors, consider this:

If you can buy at today's rates and prices, it might be wiser to focus on time in the market rather than timing the market.

The Downside of Trying To Time the Market

Timing the market isn't a good strategy because things can change. For instance, projections have suggested that mortgage rates would come down. However, shifts in various market and economic factors have delayed this timing. As U.S. News explains:

"Those who put off buying a home during the past few years as they were holding out for lower mortgage rates have been left out of the market . . . mortgage rates have stayed higher for longer than previously expected, keeping monthly housing payments elevated. In other words, affordability didn't improve for those who chose to wait."

This is why timing the market may not pay off if you’re ready and able to buy now.

The Proof: How Homeowners Benefit from Rising Home Prices

Delaying your plans means missing out on the equity you'd gain by purchasing today. The potential equity gains may surprise you.

Fannie Mae's Home Price Expectations Survey asks over one hundred economists, real estate experts, and strategists what they forecast for home prices over the next five years. Experts project that home prices will continue to rise through at least 2028.

For example, if you bought a $1,000,000 home at the beginning of this year, you could gain over $207,736 in household wealth over the next five years based on expert forecasts. That's a significant number.

This data illustrates why time in the market matters.

The Advice You Need To Hear If You’re Ready and Able To Buy Now

You might be focused on mortgage rates and how they impact your monthly payment, but don't forget home prices. Prices are expected to continue climbing, though at a more moderate pace. While this rise may not seem ideal now, it becomes a huge perk once you own a home.

Sure, you could try timing the market, but consider the equity you'll miss out on in the meantime. If you’re ready and able to buy now, ask yourself: is it really worth waiting?

Rather than timing the market, it's better to focus on time in the market.

As U.S. News Real Estate sums up:

"There's never a one-size-fits-all answer to whether now is the right time to buy a home. . . . There's also no way to predict precisely what the market will do in the near future . . . Perfectly timing the market shouldn't be the goal. This decision should be determined by your personal needs, financial means, and the time you have to find the right home."

Bottom Line

If you're debating whether to buy now or wait, remember it's time in the market, not timing the market. If you want to set yourself up for those significant equity gains, let’s connect and make it happen.