If you’ve ever looked into buying a home, you’ve probably heard the saying:"The best time to buy a home was yesterday, but the next best time is today."
It’s a common phrase for a reason—home values have historically increased over time. While today’s high mortgage rates and rising prices might have you thinking about waiting for a better deal, the reality is that holding off could actually cost you more in the long run.
Home Prices Are Still Climbing—Just at a More Normal Pace
Some buyers are hoping for a big price drop before they jump into the market. But the data tells a different story. According to Fannie Mae’s Home Price Expectations Survey, experts predict home prices will continue rising through at least 2029.
The sharp spikes of previous years have leveled off, but a steady, more sustainable growth of 3-4% per year is expected nationwide. That’s a healthy market trend—and an important factor to consider if you’re waiting for prices to fall.
What This Means for You as a Buyer
If you’re on the fence about buying, here’s what you need to keep in mind:
✅ Home values will likely be higher in the future. The longer you wait, the more expensive that dream home could become.
✅ Waiting for a lower mortgage rate may not pay off. Even if rates dip slightly, rising home prices might still make waiting a pricier decision.
✅ Buying now means building equity sooner. As home values increase, so does your investment.
Let’s break that down with real numbers. Say you buy a $400,000 home today. With projected home price increases, that same home could be worth $83,000+ more in five years. That’s wealth you could be building rather than sitting on the sidelines hoping for the "perfect" time to buy.
Why Aren’t Home Prices Dropping? It’s a Supply & Demand Game
You might be wondering: if rates are high, why aren’t prices coming down? The answer is simple—there aren’t enough homes on the market to meet demand.
While there are more homes for sale now than last year, it’s still not enough to balance the market. As Redfin explains:
“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.”
So while some markets might see price stabilization, a major nationwide drop isn’t expected anytime soon.
The Bottom Line: Time in the Market Beats Timing the Market
Trying to perfectly time the housing market is risky—just like trying to predict the stock market. Instead, focus on making a move when it makes sense for you.
Yes, today’s market has its challenges, but there are ways to make homeownership work:
🏡 Exploring different neighborhoods or home types🏡 Looking into financing options with your lender🏡 Checking out down payment assistance programs
Whether you’re thinking about buying soon or just want to keep an eye on the market, let’s chat! We can help you understand what’s happening locally and put a smart plan in place.
📩 Send me a message if you’re curious about your home-buying options! 913-302-5206
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