Why Buying Now May Be Worth It in the Long Run

Why Buying Now May Be Worth It in the Long Run

Should you buy a home now or wait? This is a question many people are asking today. While the answer depends on various factors, here’s something to keep in mind as you consider your options.

When you purchase a home, you start building equity right away, and it can accumulate surprisingly fast—even with more moderate home price appreciation.

Every quarter, Fannie Mae publishes the Home Price Expectations Survey, which gathers insights from over a hundred economists, real estate experts, and market strategists regarding their forecasts for home prices over the next five years. In the latest survey, experts anticipate that home prices will continue to rise nationally through at least 2028 (see the graph below):

While home prices will differ across local markets, this indicates a national trend of continued price increases. Although the rate of increase may vary from year to year, the key takeaway is that prices are expected to rise consistently—albeit at a moderate pace.

Though rising home prices might seem concerning now, once you own a home, that appreciation will benefit you significantly. Here’s a glimpse of the potential equity you can gain once you buy. The graph below illustrates the typical home value alongside the HPES projections, highlighting the equity at stake:

If you purchased a $450,000 home at the start of this year, based on the current value and expert forecasts from the HPES, you could potentially gain over $90,000 in household wealth in the next five years. That’s a substantial opportunity.

So, if you’re ready to buy and want to grow your wealth, this could be the right moment. With mortgage rates declining, now may be the time to take action.

To explore your options and what makes sense for you, consult with a professional. They can provide insights into local home prices and how that affects your decision and future equity. As noted by The Mortgage Reports:

“Given the intricacies of the current market, it’s more important than ever to stay informed and up to date about housing 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

Deciding whether to buy now or wait is a personal choice, but gaining an expert’s perspective can be invaluable. They won’t pressure you, but they will highlight important factors you might not have considered, such as the equity at stake.

If you need assistance in weighing your options and understanding how the current market impacts your decision, let’s connect.