Should you buy a home now, or should you wait? That’s a big question on many people’s minds today. While the right timing for you will depend on various personal factors, here’s something you may not have considered: if you’re able to buy at today’s rates and prices, it may be better to focus on time in the market, rather than timing the market.

The Downside of Trying to Time the Market

Trying to time the market isn’t a good strategy because things can change unexpectedly. For example, for much of this year, projections have indicated that mortgage rates will come down. While experts agree this is still likely, shifts in various market and economic factors have delayed the anticipated timing. Here’s how that has impacted homebuyers who’ve been waiting on the sidelines. According to U.S. News:

“Those who put off buying a home during the past few years as they were holding out for lower mortgage rates have been left out of the market . . . mortgage rates have stayed higher for longer than previously expected, keeping monthly housing payments elevated. In other words, affordability didn’t improve for those who chose to wait.”

This illustrates why trying to time the market may not pay off if you’re ready and able to buy now.

The Proof Is in the Pudding: How Homeowners Benefit from Rising Home Prices

Delaying your plans also means missing out on the equity you’d gain if you purchased today. The potential equity gains that are at stake may surprise you.

Each quarter, Fannie Mae releases the Home Price Expectations Survey, which gathers forecasts from over a hundred economists, real estate experts, and investment and market strategists on home prices over the next five years. The latest release projects that home prices will continue to rise through at least 2028.

For instance, let’s say you bought a $400,000 home at the beginning of this year. 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 a significant amount.

This data underscores why time in the market really matters.

The Advice You Need to Hear If You’re Ready and Able to Buy Now

Currently, you may be focused on what’s happening with mortgage rates and how they impact your monthly payment. However, don’t forget to factor in home prices. Prices are expected to continue climbing, albeit at a more moderate pace. While a moderate rise in prices may not seem ideal now, once you own a home, that growth will be a considerable advantage.

Sure, you could try timing the market, but consider the equity you’ll miss out on in the meantime. If you’re ready and able to buy now, you have to decide: is it really worth waiting?

As U.S. News Real Estate aptly sums up:

“There’s never a one-size-fits-all answer to whether now is the right time to buy a home. . . . There’s also no way to predict precisely what the market will do in the near future . . . Perfectly timing the market shouldn’t be the goal. This decision should be determined by your personal needs, financial means and the time you have to find the right home.”

Bottom Line

If you’re debating whether to buy now or wait, remember: it’s time in the market, not timing the market, that counts. If you want to get the ball rolling and set yourself up for significant equity gains, connect with me, Kelly Perkins, to make it happen. Call me for off-market opportunities and personalized assistance with your real estate needs.