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Are you trying to decide whether buying a home now or waiting makes more sense? There’s much to consider, from what’s happening in the market to your changing needs. But generally speaking, aiming to time the market isn’t a good strategy – too many factors are at play for that to be possible.
That’s why experts usually say time in the market is better than timing the market.
In other words, if you want to buy a home and you can make the numbers work, doing it sooner rather than later is usually worth it. Bankrate explains why:
“No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately.”
Here’s some data to break this down so you can see the benefit of buying now versus later – if you can. Each quarter, Fannie Mae releases the Home Price Expectations Survey. It asks over one hundred economists, real estate experts, and investment and market strategists what they forecast for home prices over the next five years. In the latest release, experts are projecting home prices will continue to rise through at least 2029 – just at a slower, more regular pace than they did over the past few years (see the graph below):
But what does that mean for you? To give these numbers context, the graph below uses a typical home value to show how it could appreciate over the next few years using those HPES projections (see graph below). You could start earning this in equity if you buy a home in early 2025.
In this example, let’s say you go ahead and buy a $400,000 home this January. Based on the expert forecasts from the HPES, you could gain more than $83,000 in household wealth over the next five years. That’s not a small number. If you keep renting, you’re losing out on this equity gain.
And while today’s market has its fair share of challenges, buying will be worth it in the long run. If you want to buy a home, don’t give up. There are creative ways we can make your purchase possible. From looking at more affordable areas to considering condos or townhomes or even checking out down payment assistance programs, there are options to help you make it happen.
So sure, you could wait. But if you’re waiting to time the market perfectly, this is what you’re missing out on. And that decision is up to you.
Bottom Line
If you’re torn between buying now or waiting, remember that it’s time in the market, not timing the market, that truly matters. Let’s connect if you want to discuss what you need to do to get the process started today.
