Should you buy a home now or should you wait? Thats a question a lot of people have these days. And while whats right for you is going to depend on a lot of different factors, here are two things youllwant to consideras you make your decision: equity and mortgage rates.
As soon as you buy, youll start gaining equity. And youd be surprised how quickly that can add up even with more moderatehome price appreciation.
Where Experts Predict Home Prices Will Go
As soon as you buy, youll start gaining equity. And youd be surprised how quickly that can add up even with more moderatehome price appreciation.
Each quarter,Fannie Maereleases theHome Price Expectations Survey. It asks over one hundred economists, real estate experts, and investment and market strategists what they forecast for home prices over the next five years. In the latest release, experts project prices will continue to rise nationally through at least 2028 (see the graph below):
While home prices are going to vary from one local area to the next, this shows that most experts expect home prices to rise nationally over the next few years. The size of the increase varies each year, but the important takeaway is that prices are forecast to rise every single year just at a moderate pace. So waiting may only cost you more in the end.
By choosing to invest in a home sooner rather than later, you position yourself to benefit from this appreciation. Each moment you delay could mean missing out on potential equity gains.
How Declining Mortgage Rates Can Impact Your Buying Power
Mortgage rates have hit their lowest point in over a year and a half. And thats big news if youve been sitting on the homebuying sidelines waiting for this moment.
After months of high rates keeping buyers on the sidelines, rates are already coming down due to a number of economic factors. Earlier this month, theFederal Reservecut the Federal Funds Rate by 50 basis points. This sets the stage for mortgage rates to fall even further than they already have especially since more cuts from the Fed are expected into next year. And lowermortgage ratesare bringing more buyers back into the market. Lisa Sturtevant, Chief Economist atBright MLS, says:
A drop in the cost of borrowing will help fuel more homebuyer demand . . . Falling rates will also bring more sellers into the market.
So if you put your search on hold when mortgage rates were higher, think about how much you could save now that rates are coming down. In addition, that lower rate will entice a lot of other buyers to jump back into the market, so acting now will give you a leg up before more competition arrives.
Bottom Line
To talk more about your options and what makes sense, lean on a pro. Theyll be able to tell you what home prices are doing in your area and what that means for your move (and your future equity).TheMortgage Reportssays:
Given the intricacies of the current market, its more important than ever to stay informed and up to date about housing market conditions.Whether youre looking to buy or sell in the remaining months of 2024, having a professional guide you through the process can make all the difference.
The decision to buy now or wait is a very personal one, but its valuable to have anexperts perspective. They won't push you, but they willexplain thingsyou may not have considered, like the equity thats at stake.
If you want help weighing your options and thinking through how thecurrent marketfactors in, reach out to a Seven Gables agent today.
