Time in the Market Beats Timing the Market

Time in the Market Beats Timing the Market

Deciding whether to buy a home now or wait involves weighing several factors, including market trends and your personal needs. However, trying to perfectly time the market isn’t a practical strategy due to the many unpredictable variables at play.

That’s why experts often recommend focusing on time in the market rather than attempting to time the market. In simple terms, if you’re ready and your finances align, moving forward sooner rather than later is generally a wise decision. Bankrate explains why: 

“No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately.” 

Here's a breakdown to highlight the benefits of buying a home now if you're in a position to do so. According to the latest Home Price Expectations Survey from Fannie Mae, home prices are expected to continue increasing through at least 2029. While the growth rate will be slower and more aligned with normal market trends compared to recent years, this upward trajectory indicates that waiting to buy could result in higher costs in the future.

What does this mean for you? Simply put, buying a home now could help you build equity over time. The graph below illustrates how a typical home’s value might appreciate in the coming years based on the Home Price Expectations Survey projections. By purchasing a home in early 2025, you could start benefiting from this appreciation and grow your investment steadily.

If you decide to buy a $400,000 home this January, projections from the Home Price Expectations Survey (HPES) suggest you could see an equity gain of over $83,000 in the next five years. That’s a significant boost to your household wealth. On the other hand, continuing to rent means missing out on this opportunity to build equity.

While today’s market has its challenges, this is why buying a home remains a valuable long-term investment. If you’re determined to purchase, don’t let obstacles deter you. There are creative solutions, such as exploring more affordable neighborhoods, considering condos or townhomes, or taking advantage of down payment assistance programs.

Waiting for the perfect time to buy might feel like a safe choice, but it could mean missing out on substantial equity gains. The decision is yours—just remember the long-term benefits of taking that step now.

Bottom Line

If you’re debating whether to buy now or wait, remember this: it’s time in the market that makes the real difference, not trying to perfectly time it. Let’s connect to discuss how you can start your journey toward homeownership today.