Are you wondering whether it makes more sense to buy a home now or wait for the perfect moment? It’s a common question, and with so many factors at play—from market conditions to your personal goals—it can feel overwhelming. But here’s the truth: trying to perfectly time the market isn’t a winning strategy.
That’s why experts often say, “Time in the market beats timing the market.”
Why Buying Sooner Could Be Better
If you’re ready to buy a home and can make the numbers work, buying sooner rather than later is usually the smarter move. Bankrate explains why:
“No matter which way the real estate market is leaning, buying now means you can start building equity immediately.”
Let’s break down what that means with some data.
The Long-Term Benefits of Buying Now
Every quarter, Fannie Mae releases its Home Price Expectations Survey (HPES). This survey gathers insights from over 100 economists, real estate experts, and market strategists, forecasting how home prices will change over the next five years.
According to the latest HPES, home prices are projected to continue rising through at least 2029, though at a slower, more sustainable pace than the rapid increases we’ve seen in recent years.
But what does this mean for you?
Imagine you buy a $400,000 home in early 2025. Based on expert forecasts from HPES, your home could appreciate significantly over the next five years. In fact, you could gain over $83,000 in household wealth by 2030. That’s a substantial amount of equity you’d miss out on if you continue renting.
The Cost of Waiting
While the current housing market has its challenges—from higher mortgage rates to limited inventory—waiting for the “perfect” time could mean missing out on potential equity gains.
And let’s face it: there’s no perfect time to buy a home. The real estate market is influenced by a wide range of factors, including inflation, interest rates, and supply and demand dynamics. Trying to predict exactly when the market will favor buyers is nearly impossible.
Instead, focus on what you can control:
- Explore more affordable areas
- Consider condos or townhomes
- Look into down payment assistance programs
These strategies can help you navigate today’s market and make homeownership a reality sooner rather than later.
Bottom Line
If you’re torn between buying now or waiting, remember this: it’s time in the market, not timing the market, that truly builds wealth. By purchasing a home now, you can start building equity and securing your financial future.
Ready to get started? Let’s connect to discuss your options and create a plan that works for you. Together, we can make your homeownership dreams a reality.
