Should You Buy a Home Now or Wait?
That’s a question a lot of people are asking these days. While the right answer for you will depend on several factors, here’s something important to consider as you make your decision.
When you buy a home, you start building equity immediately—and you might be surprised at how quickly that can add up, even with more modest home price appreciation.
Each quarter, Fannie Mae releases the Home Price Expectations Survey (HPES), which asks over 100 economists, real estate professionals, and investment and market strategists for their projections on home prices over the next five years. In the most recent release, experts predict that home prices will continue to rise nationally through at least 2028.
While home prices will vary from one location to another, this data suggests that prices are expected to climb nationally. The rate of increase may fluctuate year-to-year, but the key takeaway is that prices are projected to rise every year, albeit at a more moderate pace.
And while rising home prices may not sound like great news right now, once you own a home, that growth will be a significant advantage for you. Here’s an example of how much equity you could potentially build by buying now.
If you purchased a $450,000 home at the beginning of this year, using that starting value and the HPES projections, you could gain more than $90,000 in home equity over the next five years. That’s a substantial amount.
So, if you’re ready and able to buy, and building wealth is one of your goals, you’ve got an opportunity in front of you. With mortgage rates recently declining, now might be the right time to consider taking the next step.
To better understand your options and what makes the most sense for you, consult a professional. They can provide insights on home prices in your area and explain what those trends mean for your move and future equity growth. As the Mortgage Reports states:
“Given the complexities of the current market, it’s more important than ever to stay informed and up to date on real estate market conditions. Whether you’re looking to buy or sell in the remaining months of 2024, having a professional guide you through the process can make all the difference.”
Bottom Line
The decision to buy now or wait is a very personal one, but having the perspective of an expert can be invaluable. They won’t pressure you, but they will point out factors you may not have considered, such as the potential equity you stand to gain.
If you’d like help evaluating your options and understanding how current market trends might impact your decision, reach out to a local real estate agent.