Are you struggling to make up your mind about whether to buy a home now or wait to see what happens in the real estate market? In general, involving yourself in trying to time the market is not a good way to go. There are too many factors that influence what happens in the housing market—plus, the needs that are prompting your move will only become more pressing over time.
That’s why when you ask the experts, they usually say that the time you’re in the market beats trying to time the market. Put another way, if you want to buy a home and you can get the numbers to work, it’s usually worth it to do it sooner, rather than later. It comes down to the fact that buying now means you can start building home equity immediately. Home equity is the difference between the amount you owe on your mortgage and the price you would get for your home if you sold it. Let’s look at how much home equity you could build in the next five years if you buy a home in 2025.
Where Home Prices May Go. Every three months, mortgage giant Fannie Mae issues their Home Price Expectations Survey. This study polls more than a hundred economists, and real estate and investment experts, who forecast where they think home prices will go in the next five years. Their latest survey projects home prices will continue to rise at a more normal pace than they have recently. Their forecast at the end of last year pegged a 3.78% bump in home prices this year, which will increase to a 4.12% gain by the end of 2029.
What That Means for Your Home Equity. To put some numbers on these projections, let’s look at what could happen if you bought a home for $400,000 at the beginning of this year. Based on the experts’ forecasts, you could gain more than $83,000 in household wealth by the start of 2030. That’s no small increase to your net worth over the next five years—and you’d never see it if you keep renting.
Yes, buying could be worth it in the long run. Sure, there are challenges in today’s real estate market, but don’t give up—there are several ways we can help you proceed. We can show you more affordable neighborhoods to consider; introduce you to lower-priced condos or townhomes; and guide you to down payment assistance programs you may qualify for.
Just remember, it’s time in the market, not timing the market that counts. If you’d like to get into the market sooner, we’re happy to help you get the process started right away.
Thinking of selling or buying a home? Please text, call, or email us to learn about your best options today!
