Should you buy a home now or wait? It’s a question many are asking these days. While the right choice depends on several personal factors, here’s an important point to consider as you weigh your options.
Once you purchase a home, you begin building equity. You might be surprised at how quickly that equity grows, even with moderate increases in home prices.
Each quarter, Fannie Mae publishes the Home Price Expectations Survey, gathering insights from over one hundred economists, real estate experts, and market strategists. Their latest report forecasts steady national home price growth through at least 2028 (see graph below).
Although home prices will differ from one area to another, the key takeaway is that they’re expected to rise nationwide. While the rate of increase may vary from year to year, the important point is that prices are forecast to climb steadily, albeit at a moderate pace.
Rising home prices may seem concerning at the moment, but once you own a home, that appreciation becomes a significant advantage. The graph below illustrates how much equity you could gain, based on the typical home’s value and the latest projections from the Home Price Expectations Survey (HPES).
If you purchased a $450,000 home at the start of this year, based on that initial value and expert forecasts from the HPES, you coguld see a gain of over $90,000 in household wealth over the next five years. That’s a substantial increase.
So, if you’re financially ready and building wealth is a priority, this could be a great opportunity. With mortgage rates dropping, now might be the right time to make a move.
To explore your options and find out what makes the most sense for your situation, consult a real estate professional. They can provide insights into local home prices and explain how this impacts your decision—and your future equity. As The Mortgage Reports notes:
“Given the complexities of today’s market, staying informed and up-to-date on housing market trends is more crucial than ever. Whether you’re buying or selling in the remainder of 2024, having a professional guide can make all the difference.”
Bottom Line
The choice to buy now or wait is a personal decision, but getting insight from an expert can be incredibly helpful. They won’t pressure you, but they can offer valuable information, like the potential equity you might not have considered.
If you’d like assistance in evaluating your options and understanding how the current market plays into your decision, let’s connect.
