Should You Buy a Home Now or Wait?

The question of whether to buy a home now or wait is on many people's minds. While personal
factors play a significant role in this decision, there's an important consideration you might be
overlooking: the value of time in the market versus timing the market.

The Downside of Trying to Time the Market

Attempting to time the market is risky because market conditions are constantly changing. For
example, while projections earlier this year indicated that mortgage rates would decline, various
economic factors have delayed this anticipated drop. As U.S. News highlights:

"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 illustrates why waiting for the perfect time to buy may not be a wise strategy if you are
ready and able to purchase now.

The Proof is in the Pudding: How Homeowners Benefit from Rising Home Prices

Postponing your home-buying plans also means missing out on potential equity gains. Each
quarter, Fannie Mae releases the Home Price Expectations Survey, which collects forecasts from


over one hundred economists, real estate experts, and market strategists. According to the latest
survey, home prices are expected to continue rising through at least 2028.

To put this into perspective, let's look at a hypothetical scenario. Suppose you purchase a
$400,000 home at the beginning of this year. Based on expert projections from the HPES, you
could see more than $83,000 in household wealth over the next five years. This substantial gain
underscores why time in the market is so crucial.

The Advice You Need If You're Ready and Able to Buy Now

While current mortgage rates and their impact on your monthly payment are important, don’t
overlook the significance of home prices. Prices are anticipated to keep climbing, albeit at a
more moderate pace. This gradual increase, while potentially challenging now, will be
advantageous once you own a home, adding to your equity and overall financial growth.

Consider this: trying to time the market might mean missing out on significant equity gains. If
you are ready and able to buy now, the question is: is it worth waiting?

As U.S. News Real Estate aptly puts it:

"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."

If you're debating whether to buy now or wait, remember that time in the market often outweighs
timing the market. If you're ready to take advantage of potential equity gains, let's connect and
get started on your home-buying journey.