At some point, you’ve probably heard the classic real estate advice: “The best time to buy was yesterday. The next best time? Today.” And guess what? That still holds true.
Home prices are climbing, and mortgage rates remain unpredictable. If you’re holding out for prices to drop or the perfect interest rate to appear, you might be making a costly mistake. Here’s why waiting to buy could end up costing you more in the long run.
Home Prices Are Still Going Up – Just More Slowly
If you’re hoping for home prices to take a dramatic dip, think again. According to the Home Price Expectations Survey from Fannie Mae, experts predict prices will keep increasing through at least 2029.
While we’re no longer seeing the wild surges of past years, home values are expected to rise at a steady 3-4% annually. That’s a much more typical, sustainable pace – and a sign that prices aren’t coming down anytime soon.
What This Means for You
Holding off on buying might seem like a safe bet, but here’s what you need to consider:
- Tomorrow’s homes will cost more than today’s. Every month you wait, prices inch higher, meaning you’ll pay more for the same home down the line.
- Mortgage rates are unpredictable. Even if rates drop slightly, rising home prices may cancel out any savings.
- Buying now means building equity sooner. The sooner you purchase, the sooner you start gaining value on your investment.
For example, if you buy a $400,000 home today, it’s projected to appreciate by over $83,000 in just five years. That’s a solid return—money that could be growing in your pocket instead of being lost while you wait.
Why Aren’t Prices Dropping? Supply and Demand Tell the Story
Even though more homes are hitting the market compared to last year, there still aren’t enough to meet buyer demand. That ongoing shortage keeps prices high. As Redfin puts it:
“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”
While local markets vary, most areas will see moderate price increases rather than a sudden drop. In short—waiting for a crash is wishful thinking.
Time in the Market Beats Timing the Market
If you’re on the fence about buying, remember this: real estate rewards those who act, not those who wait for a perfect moment.
Yes, buying a home in today’s market comes with challenges, but there are ways to make it work—exploring different neighborhoods, considering condos or townhomes, looking into creative financing options, or using down payment assistance programs. The key is to make a move when it makes sense for you, rather than waiting for a unicorn scenario that may never come.
Want to see what’s happening with home prices in your area? Whether you’re ready to buy now or just want a game plan, let’s chat about your options.
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