With the real estate market constantly changing, many potential homebuyers are wondering, “Should I buy now or wait?” While the answer depends on personal circumstances, one key factor to keep in mind is the opportunity to build equity.
As soon as you purchase a home, you start building equity—a financial asset that can grow significantly over time, even if home price appreciation is more moderate.
Each quarter, Fannie Mae conducts the Home Price Expectations Survey, asking more than 100 economists, real estate experts, and market analysts to predict home prices over the next five years. According to the latest survey, home prices are expected to rise nationally through at least 2028. While price trends will vary by region, the forecast indicates that prices are expected to increase every year—albeit at a steadier pace.
While rising home prices may seem daunting, this trend is actually a significant advantage once you become a homeowner. Over time, you stand to gain from the equity growth in your property. Here’s an example: if you purchased a $450,000 home at the start of the year, projections show that you could accumulate over $90,000 in equity within five years based on market forecasts. That’s a considerable increase in wealth just from homeownership.
Why Consider Buying Now?
Aside from building equity, current mortgage rates have started to drop from last year’s highs, which makes buying a home more affordable now than it was several months ago. Lower mortgage rates translate to lower monthly payments, which can make a significant difference in your home-buying decision.
Additionally, real estate markets like Laguna Beach have a history of sustained price appreciation. Investing in a home now could position you for long-term gains, especially in highly sought-after areas where demand remains strong and inventory limited.
The Value of Working with a Real Estate Professional
The real estate market is nuanced, especially in competitive areas like Laguna Beach. That’s why partnering with an experienced local real estate agent is crucial. A professional can offer personalized insights into the current market conditions and provide guidance on whether now is the right time for you to buy.
As The Mortgage Reports states, “Given the complexities of today’s market, having a knowledgeable guide is more important than ever.”
Final Thoughts
Deciding when to buy a home is a deeply personal decision, but it’s important to consider how much equity you could build over time. With home prices projected to continue rising and mortgage rates showing signs of improvement, now might be the ideal time to make a move—especially in a market as dynamic as Laguna Beach.
To get expert advice on your local market and to explore your options, it’s always a good idea to consult a real estate professional. Their expertise could be the key to maximizing your investment and building wealth through homeownership.
Interested in learning more?
Kelly Perkins
949.310.3754
kellyperkins@compass.com
Inspired by KeepingCurrentMatters.com.
