Should I Buy a Home Right Now? Experts Say Prices Are Only Going Up

Should I Buy a Home Right Now? Experts Say Prices Are Only Going Up

You may have heard the saying, "Yesterday was the best time to buy a home, but the next best time is today." This holds true as home values continue to rise nationally. Despite high mortgage rates and increasing home prices, waiting for the perfect moment to buy could end up costing more in the long run.

Home prices are still on the rise but are increasing at a more regular pace. The notion that prices will significantly drop is unlikely in most markets. According to the Home Price Expectations Survey from Fannie Mae, prices are expected to continue rising through at least 2029, with experts predicting a steady annual increase of around 3-4%. This more consistent pace is a positive sign for prospective buyers.

While you might be tempted to wait for home prices or mortgage rates to drop before buying, consider this:

1. Future home prices are expected to be higher than today's. The longer you wait, the higher the purchase price will likely be.
2. Waiting for the perfect mortgage rate or price drop may not pay off. Even if rates decrease slightly, increasing home prices could still make waiting more costly overall.
3. Buying now starts building equity sooner. With home values on the rise, your investment begins to grow as soon as you purchase.

To illustrate, if you buy a $400,000 home now, based on current forecasts, its value could increase by more than $83,000 over the next five years. That’s a significant return on investment, making now a potentially smart time to buy rather than waiting and potentially missing out.

The reason home prices aren't dropping largely comes down to supply and demand. Despite the increase in homes for sale compared to last year or even last month, there simply aren't enough properties available to meet buyer demand. This imbalance keeps pushing prices upward, as Redfin explains, maintaining a seller's market where the competition among buyers can drive up prices even in a market with more listings than before.

"Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand."

While markets differ, most are expected to see ongoing moderate price increases. Some may stabilize, but significant nationwide drops are unlikely.

Bottom Line: Time in the Market Beats Timing the Market

For those debating whether to buy now or wait, remember: real estate benefits those who participate, not those who wait for the perfect moment.

Today's market has its challenges, but opportunities exist—like exploring different areas, considering smaller properties, or learning about alternative financing and down payment aids. It’s about making a move when it's right for you, not waiting for an unlikely perfect scenario.

Interested in local market trends or ready to plan your next steps? Let's set you up for success by examining what’s available now or just planning ahead.