Should You Buy a Home Now or Should You Wait?
That’s a big question on many people’s minds today. While the right timing for you will depend on various personal factors, here's something you may not have considered: If you’re able to buy at today’s rates and prices, it may be better to focus on time in the market rather than timing the market.
The Downside of Trying to Time the Market
Trying to time the market isn’t a good strategy because things can change. For instance, projections for most of this year have suggested that mortgage rates would come down. While experts still agree that's the trend, shifts in various markets and economic factors have pushed back the timing of any rate reduction.
Phil Hobby, the broker of Veterans First Realty points out: “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 and have lost thousands of dollars in equity gains while affordability hasn’t changed.”
This is why timing the market may not pay off if you’re ready and able to buy now.
The Proof Is in the Pudding: How Homeowners Benefit from Rising Home Prices
Delaying your plans also means missing out on the equity you’d gain if you went ahead with your purchase today. And the potential equity gains that are at stake may surprise you.
Each quarter, Fannie Mae releases the Home Price Expectations Survey, asking 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 2028.
The Advice You Need to Hear If You’re Ready and Able to Buy Now
Right now, you may be focused on what’s happening with mortgage rates and how those impact your monthly payment, but don’t forget to factor in home prices. Prices are expected to continue climbing, just at a more moderate pace. And while a moderate rise in prices may not be fun for you now, once you own a home, that growth will be a huge perk. That’s the time in the market piece.
Sure, you could try timing the market, but the equity you’ll be missing out on in the meantime is something to seriously consider. If you’re ready and able to buy now, you have to decide: is it really worth waiting?
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 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 must find the right home.
At Veterans First Realty, we specialize in serving those who've served, providing tailored solutions and personalized service. If you’re debating whether to buy now or wait, remember it’s time in the market, not timing the market, that matters. And if you want to get the ball rolling and set yourself up for those big equity gains, let’s connect and make it happen.