Debating whether to buy a home now or wait for the “perfect” moment? While it’s natural to consider market conditions and personal factors, trying to perfectly time the market is rarely a successful strategy. The reality is, there are too many variables at play to predict the ideal time to buy.
That’s why experts emphasize that time in the market is far more valuable than trying to time the market.
Why Buying Sooner Often Pays Off
If you’re ready to buy a home and the numbers align with your budget, purchasing now can offer long-term financial benefits. As Bankrate explains:
“No matter which way the real estate market is leaning, buying now means you can start building equity immediately.”
The Power of Equity Over Time
Each quarter, Fannie Mae releases the Home Price Expectations Survey (HPES), gathering insights from over 100 economists and market experts about home price trends. The latest projections suggest home prices will continue to climb through at least 2029, though at a steadier, more sustainable pace than in recent years.
What does this mean for you? Here’s an example:
Imagine purchasing a $400,000 home in early 2025. Based on HPES projections, your home could appreciate significantly over the next five years. Using these forecasts, you could gain over $83,000 in household wealth through equity by 2030.
If you choose to rent instead, you miss out on this equity growth. While renting offers flexibility, it doesn’t contribute to building long-term wealth.
Overcoming Today’s Market Challenges
The current market may have its challenges, but there are creative solutions to help you achieve homeownership:
- Explore more affordable locations to find homes that fit your budget.
- Consider alternative property types like condos or townhomes, which may cost less.
- Look into down payment assistance programs to reduce upfront costs.
Waiting might seem like the safer option, but if you’re holding off solely to time the market, you could lose out on years of equity growth and appreciation.
Bottom Line
If you’re unsure whether to buy now or wait, remember that it’s not about perfectly timing the market—it’s about spending time in it. Reach out today to discuss your options and take the first step toward making your homeownership goals a reality.