Should I Buy a Home Right Now? Experts Say Prices Are Only Going Up

Should I Buy a Home Right Now? Experts Say Prices Are Only Going Up

You’ve likely heard the saying, “The best time to buy a home was yesterday, but the next best time is today.”

That’s because home values across the country continue to rise. With mortgage rates remaining high and prices increasing, you may be waiting for a drop in prices or the perfect interest rate. However, trying to time the market could end up costing you.

Home Prices Are Still Climbing – Just at a Steady Rate

A significant decline in prices isn’t expected in most areas. According to Fannie Mae’s Home Price Expectations Survey, experts predict home values will keep rising through at least 2029.

While the rapid price jumps of previous years have slowed, projections show a steady national increase of about 3-4% annually. This is a healthier and more sustainable growth rate—good news for buyers looking for stability.

What This Means for You

Waiting for lower home prices or mortgage rates might seem like a good strategy, but here’s what to consider:

• Home prices are expected to keep increasing. The longer you wait, the higher your potential purchase price.
• Holding out for the perfect mortgage rate could backfire. Even if rates dip, rising home values may still make waiting more expensive.
• Buying now helps you build equity sooner. As home prices appreciate, your investment grows over time.

For example, if you buy a $400,000 home today, price forecasts suggest it could gain over $83,000 in value within five years. That’s a significant return—something to keep in mind before staying on the sidelines.

Why Aren’t Prices Dropping? It’s All About Supply and Demand

Even with more homes on the market compared to last year, inventory remains too low to meet buyer demand. This imbalance continues to push prices upward. 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."

While every market is unique, most areas will likely see steady price growth rather than a major national drop.

Bottom Line: Time in the Market Beats Timing the Market

If you’re unsure whether to buy now or wait, keep in mind that real estate benefits those who enter the market rather than those who try to time it perfectly.

Despite today’s challenges, options like exploring different locations, considering condos or townhomes, or looking into financing solutions can help. The key is making a move when it aligns with your goals, rather than waiting for an ideal scenario that may never come.

Curious about price trends in our local market? Whether you're ready to buy or just weighing your options, let’s connect to create a strategy that works for you.