Should I Buy a Home Right Now? Experts Say Prices Are Only Going Up
At one point or another, you’ve probably heard someone say, “Yesterday was the best time to buy a home, but the next best time is today.”
That’s because nationally, home values continue to rise. And with mortgage rates still stubbornly high and home prices going up, you may be holding out for prices to fall or trying to time the market for that perfect rate. But here’s the truth: waiting for the right moment could cost you in the long run.
Home Prices Are Still Rising – Just at a More Normal Pace
The idea that prices will drop dramatically is wishful thinking in most markets. According to the Home Price Expectations Survey from Fannie Mae, industry analysts are saying prices are projected to keep rising through at least 2029.
While we’re no longer seeing the steep spikes of previous years, experts project a steady and sustainable increase of around 3-4% per year, nationally. And the good news is, this is a much more normal pace – a welcome sign for hopeful buyers (see graph below):
What This Means for You
While it’s tempting to wait it out for prices or mortgage rates to decline before you buy, here’s what you’ll need to consider if you do.
- Tomorrow’s home prices will be higher than today’s. The longer you wait, the more that purchase price will go up.
- Waiting for the perfect mortgage rate or a price drop may backfire. Even if rates dip slightly, rising home prices could still make waiting more expensive overall.
- Buying now means building equity sooner. Home values are rising, which means your investment starts growing as soon as you buy.
Let’s put real numbers into this equation. If you purchase a $400,000 home today, based on these price forecasts, it’s expected to go up in value by more than $83,000 over the next five years. That’s some serious money back in your pocket instead of being left on the sidelines (see graph below):
Why Aren’t Prices Dropping? It’s All About Supply and Demand
Even though there are more homes for sale right now than there were at this time last year, or even last month, there still aren’t enough of them on the market for all the buyers who want to purchase them. And that puts continued upward pressure on prices. As Redfin puts it:
“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 different, most areas will continue to see moderate price growth. Some may level off a bit, but a major national drop? Not likely.
Time in the Market Beats Timing the Market
If you’re debating whether to buy now or wait, remember this: real estate rewards those who get in the market, not those who try to time it perfectly.
Yes, today’s housing market has its challenges, but there are ways to make it work —exploring different neighborhoods, considering smaller condos or townhomes, asking your lender about alternative financing, or tapping into down payment assistance programs. The key is making a move when it makes sense for you rather than waiting for a perfect scenario that may never arrive.
Want to take a look at what’s happening with prices in our local market? Whether you’re ready to buy now or just exploring your options, having a plan in place can set you up for success.
Should I Buy a Home Right Now? Experts Say Prices Are Only Going Up
The Market’s Reality Check: Why Waiting Might Not Pay Off
The real estate landscape is ever-evolving, but one truth remains constant: home prices are on an upward trajectory. If you’re on the fence about whether to buy a home, you’re not alone. Many prospective buyers are trying to strategize the perfect market timing, hoping for a dip in home values or a sudden drop in mortgage rates. However, real estate experts caution against waiting too long—because if history has taught us anything, it’s that the best time to buy a home was yesterday, and the second-best time is today.
The Numbers Don’t Lie: Why Home Prices Are Rising
According to Fannie Mae, the expectation is that home values will continue to climb steadily through at least 2029. While the double-digit appreciation of past years has slowed, price forecasts suggest a more sustainable 3-4% increase annually. This steady growth ensures that real estate remains one of the most robust investment opportunities available.
So, what’s driving this upward trend? It all boils down to supply and demand. Despite a slight increase in housing inventory, there still aren’t nearly enough homes for sale to satisfy the market for all the buyers actively searching. Redfin analysts confirm that while new listings have entered the market, demand remains too strong for prices in our local market to experience a significant drop.
Buying Now vs. Waiting: A Costly Gamble
Every year you wait to buy a home, you risk facing a higher purchase price. Let’s crunch some numbers. Suppose you’re eyeing a $400,000 property today. If home prices increase by just 3% annually, that same home could cost you upwards of $460,000 in five years. That’s $60,000 more—without even factoring in potential hikes in mortgage rates.
Additionally, buying a home now allows you to start building equity immediately. Unlike renting—where monthly payments vanish into a landlord’s pocket—homeownership turns your payments into a long-term investment. Over time, property appreciation can provide significant financial gains.
Exploring Alternative Financing Options
One of the biggest hurdles for buyers, particularly first-timers, is securing adequate financing. Thankfully, a variety of solutions exist. Alternative financing options, including down payment assistance programs, can help ease the burden of upfront costs. If you’re in Florida, working with a West Palm Beach mortgage broker can connect you with the best mortgage rates in West Palm Beach and guide you toward affordable West Palm Beach home loans tailored to your budget.
For those with limited funds for a down payment, down payment assistance grants and loans offer a valuable lifeline. Many first-time home buyer loans in West Palm Beach provide favorable terms, making it easier to step into homeownership.
The Advantage of Local Mortgage Expertise
Navigating today’s housing market requires a strong financial strategy. Working with local mortgage lenders in West Palm Beach ensures that you’re getting insights tailored to your specific location. Whether you’re exploring West Palm Beach refinancing options, comparing interest rates with a West Palm Beach mortgage calculator, or seeking property loan advice in West Palm Beach, having an expert by your side makes all the difference.
Additionally, securing mortgage preapproval in West Palm Beach before starting your home search can give you a competitive edge. Sellers prefer buyers who have preapproval in hand, as it demonstrates financial readiness and reduces the risk of deals falling through.
Considering Condos or Townhomes as Entry Points
If single-family homes feel out of reach due to pricing or availability, consider condos or townhomes. These property types often come with lower purchase prices, making them ideal for first-time buyers or those looking to downsize. Plus, condos typically offer community amenities like pools, fitness centers, and security features, adding value beyond just square footage.
Final Thoughts: Time in the Market Beats Timing the Market
The bottom line? Real estate isn’t about trying to time the market perfectly—it’s about time in the market. Every month you delay your purchase, home values climb, and your potential investment opportunity shrinks. Real estate market cycles fluctuate, but long-term trends show that waiting rarely pays off.
If you’re ready to make a move, explore financing options, or learn more about prices in our local market, don’t hesitate to take action. Whether it’s finding the best mortgage rates in West Palm Beach, discussing terms with a West Palm Beach mortgage broker, or looking into commercial mortgage brokers in West Palm Beach for investment opportunities, now is the time to take that crucial first step toward homeownership.
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