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. 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 on renting, you’re losing out on this equity gain.
And while today’s market has its fair share of challenges,
this is why buying is going to 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 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 torn between buying now or waiting, don’t forget
that it’s time in the market, not timing the market that truly matters. Connect
with me if you want to talk about what you need to do to get the process
started today.
Source: Real Estate with Keeping Current Matters
