Why Buying Now May Be Worth It in the Long Run

Why Buying Now May Be Worth It in the Long Run

If you're wondering whether to buy a home now or wait, it's a decision that depends on several factors unique to you. But one key thing to keep in mind is how quickly you can start building equity once you own a home. Even with more moderate price increases, that equity can grow faster than you might expect.

According to the latest Home Price Expectations Survey from Fannie Mae, over 100 economists, real estate experts, and market strategists forecast home prices will continue rising nationally through 2028. So, waiting could mean missing out on the chance to build equity sooner.

Home prices will differ depending on your local market, but projections show they're expected to rise across the country. While the rate of growth may fluctuate from year to year, the key takeaway is that prices are forecast to increase every year, albeit at a more moderate pace.

Though rising prices might seem daunting now, once you're a homeowner, this appreciation works in your favor. The graph below demonstrates how much equity you could gain over time based on typical home values and the latest projections from the Home Price Expectations Survey.

If you purchased a $450,000 home at the beginning of this year, expert forecasts from the Home Price Expectations Survey (HPES) suggest you could accumulate over $90,000 in household wealth over the next five years. That’s a substantial increase in equity.

If building wealth is a priority for you and you're ready to buy, now could be a prime opportunity—especially with mortgage rates dropping. To discuss your options and determine the best move, rely on a professional. They can provide insights into local home prices and guide you on how this could impact your future equity. As The Mortgage Reports highlights:

“Given the intricacies of the current market, it’s more important than ever to stay informed and up to date about housing market conditions. Whether you’re looking to buy or sell in the remaining months of 2024, having a professional guide you through the process can make all the difference.” 

Bottom Line

Deciding whether to buy now or wait is a personal choice, and having an expert's perspective can make all the difference. A professional won’t pressure you but will provide clarity on key factors you may not have considered, such as the potential equity you could gain. If you're looking for guidance on how the current market fits into your plans, let's connect and go over your options together.