Trying to decide whether it makes more sense to buy a home now or wait? There’s a lot 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 – there are too many factors at play for that to even 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’re able to 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 really see the benefit of buying now versus later – if you’re able to. 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 normal pace than they did over the past few years (see the graph below):

But what does that really 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). This is what you could start to earn 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. Experts predict you could build over $83,000 in wealth through homeownership in the next five years. That’s not a small number. If you keep on renting, you’re losing out on this equity gain.

Despite today’s challenges, buying now is worth it for long-term gains. If you want to buy a home, don’t give up. There are creative ways we can make your purchase possible. Explore affordable areas, condos, townhomes, or down payment assistance programs to make homeownership possible.

So sure, you could wait. But if you’re just waiting it out to perfectly time the market, this is what you’re missing out on. And that decision is up to you.

Bottom Line

If you’re deciding whether to buy now or wait, remember: staying in the market matters more than timing it. Connect with us today to discuss how to start the process!