Should you buy a home now or should you wait? That’s a big question on many people’s minds today. While the right timing for you depends on various personal factors, here’s something crucial to consider.
If you’re able to buy at today’s rates and prices, it may be better to focus on time in the market, rather than timing the market.
The Downside of Trying To Time the Market
Trying to time the market isn’t a good strategy because things can change. For example, projections for much of this year indicated that mortgage rates would come down. While experts still believe this will happen, shifts in market and economic factors have delayed the expected timing. Here’s how this impacts homebuyers who’ve been sitting on the sidelines. As U.S. News says:
“Those who put off buying a home during the past few years as they were holding out for lower mortgage rates have been left out of the market . . . mortgage rates have stayed higher for longer than previously expected, keeping monthly housing payments elevated. In other words, affordability didn't improve for those who chose to wait.”
This is why timing the market may not pay off if you’re ready and able to buy now.
The Proof Is in the Pudding: How Homeowners Benefit from Rising Home Prices
Delaying your plans also means missing out on the equity you’d gain if you went ahead with your purchase today. The potential equity gains at stake may surprise you.
Each quarter, Fannie Mae releases the Home Price Expectations Survey (HPES), which asks over one hundred economists, real estate experts, and investment strategists for their home price forecasts over the next five years. The latest release projects home prices will continue to rise through at least 2028.
To give these numbers context, let’s look at what you stand to gain once you buy. Imagine you purchase a $400,000 home at the beginning of this year. Based on expert forecasts from the HPES, you could gain more than $83,000 in household wealth over the next five years. That’s not a small number.
This data helps paint the picture of why time in the market really matters. In Miami, home prices have been following a steady upward trend, reflecting the national forecasts and adding to the potential for significant equity gains.
The Advice You Need To Hear If You’re Ready and Able To Buy Now
Right now, you may be focused on mortgage rates and how they impact your monthly payment, but don’t forget to consider home prices.
Prices are expected to continue climbing, albeit at a more moderate pace. While a moderate rise in prices may not seem appealing now, once you own a home, that growth will be a significant perk. That’s the essence of time in the market.
Sure, you could try timing the market, but the equity you’ll miss out on in the meantime is something to seriously consider. If you’re ready and able to buy now, you have to decide: is it really worth waiting?
Rather than focusing on timing the market, it’s better to have time in the market. As U.S. News Real Estate sums up:
“There's never a one-size-fits-all answer to whether now is the right time to buy a home. . . . There's also no way to predict precisely what the market will do in the near future . . . Perfectly timing the market shouldn't be the goal. This decision should be determined by your personal needs, financial means and the time you have to find the right home.”
Closing Thoughts
If you’re debating whether to buy now or wait, remember it’s time in the market, not timing the market. And if you want to get the ball rolling and set yourself up for those big equity gains, let’s connect to make it happen. Contact me, Anthony Spitaleri, your trusted Miami real estate agent, for expert guidance and support in your home buying journey.
