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? That’s a question many people are asking these days. While the right choice for you will depend on various factors, here’s something to consider as you make your decision.

Once you buy, you’ll start building equity. You might be surprised at how quickly that can accumulate – even with moderate home price appreciation.

Every quarter, Fannie Mae releases the Home Price Expectations Survey. It gathers insights from over one hundred economists, real estate experts, and market strategists on their home price forecasts for the next five years. In the latest release, experts predict that prices will continue to rise nationally through at least 2028 (see the graph below):

While home prices are going to vary from one local area to the next, this shows they’re expected to keep going up nationally. The size of the increase varies from year-to-year, but the important takeaway is that prices are forecast to rise every single year – just at a moderate pace.

And while rising home prices may not sound great right now, once you own a home, that growth will be a big bonus for you. Here’s a look at what you stand to gain equity-wise once you buy. The graph below uses a typical home’s value and those HPES projections to show how much equity is at stake:

If you bought a $450,000 home at the beginning of this year, based on that starting value and the expert forecasts from the HPES, you could gain more than $90,000 in household wealth over the next five years. That’s significant.

So, if you’re ready and able to buy, and growing your wealth is important to you, you’ve got an opportunity in front of you. And now that mortgage rates have fallen, it may be time to consider making a move.

To talk more about your options and what makes sense, lean on a pro. They’ll be able to tell you what home prices are doing in your area and what that means for your move (and your future equity). The Mortgage Reports says:

“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 deeply personal choice, but having an expert's insight can be invaluable. They won't pressure you, but they will clarify aspects you might not have considered, such as the potential equity involved.

If you need assistance in evaluating your options and understanding how the current market conditions play a role, let's get in touch.