You’ve probably heard the popular saying, “The best time to buy a home was yesterday. The next best time is today.” But is this really true? Let’s take a closer look at what’s happening in today’s real estate market and why experts are advising against waiting for prices or rates to drop.
Home Prices Keep Climbing—Just More Steadily
If you’re waiting for home prices to significantly drop, you might be disappointed. Industry experts, including those from the Fannie Mae Home Price Expectations Survey, predict home values will continue to rise steadily through at least 2029. While the sharp increases we saw in recent years have cooled, prices nationally are still expected to rise consistently by about 3-4% per year—a much healthier and more predictable market for buyers.
What This Means for Your Wallet
Waiting to buy a home might feel logical if you’re hoping for lower prices or better mortgage rates. But here’s why waiting could backfire:
- Prices Will Keep Going Up: The home you like today will likely cost more next year.
- Mortgage Rates Are Unpredictable: Even if rates drop slightly, rising home prices could offset any savings, making waiting potentially more expensive.
- Start Building Equity Now: Buying sooner means your investment in a home begins appreciating immediately.
Consider this real-life scenario: If you buy a home today priced at $400,000, it’s projected to appreciate by over $83,000 within five years. That’s significant equity you’re gaining instead of losing out by staying on the sidelines.
Why Aren’t Prices Dropping? It’s All About Supply and Demand
The real reason prices aren’t going down is simple economics—supply and demand. Although inventory has improved slightly compared to last year, there still aren’t enough homes available to meet the high buyer demand. Redfin sums it up clearly:
“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 some local markets may vary slightly, a dramatic national price drop isn’t on the horizon. Most areas will continue experiencing moderate, steady growth.
The Bottom Line: Getting in Beats Timing the Market
If you’re still debating whether to jump in now or wait, remember that real estate typically rewards long-term ownership—not perfect timing. Today’s market, despite its challenges, offers opportunities for smart buyers:
- Explore different neighborhoods.
- Consider condos or townhomes as affordable alternatives.
- Discuss alternative financing options with your lender.
- Utilize available down payment assistance programs.
The best strategy is to act when it aligns with your personal financial goals, not when you think conditions might become ideal.
Ready to dive deeper into what’s happening in your local real estate market? Contact us to create a personalized plan that fits your goals, whether you’re eager to buy now or just beginning your journey.