If you’re on the fence about whether to buy a home now or wait, you’re not alone. With so many factors at play in today’s market—interest rates, home prices, and economic conditions—it can be hard to make the right call. But while waiting may seem like a safe option, it could actually cost you more in the long run. One key factor many buyers overlook is equity, and the longer you wait, the more potential equity you may miss out on.
Home Prices Are Projected to Keep Rising
According to expert forecasts, home prices are expected to continue climbing over the next five years. Even if the rate of growth is moderate, it can still make a significant impact on your financial future. Let’s break it down. If you purchase a home valued at $450,000 today, experts predict you could gain more than $90,000 in equity over the next five years, based on projected price appreciation from the Home Price Expectation Survey.
That’s equity you build simply by owning a home and benefiting from rising market values. The longer you own, the more equity you can build—potentially without doing much more than maintaining your property.
What Is Equity and Why Does It Matter?
Equity is the difference between what your home is worth and what you owe on your mortgage. As home values increase, the amount of equity you have in your property grows. This is a key component of building long-term wealth through real estate. When you wait to buy, you risk missing out on that wealth-building opportunity.
Why Waiting May Cost You
While it’s natural to hesitate, especially if you’re trying to time the market perfectly, waiting to buy a home could actually set you back financially. Here’s why:
- Missed equity: As home prices rise, you lose the chance to accumulate that equity. For example, if you wait even one or two years, the home you’re considering now could cost more—and you’ll have missed out on valuable price appreciation.
- Rising home prices: In many markets, home prices are steadily increasing. While it’s easy to hope prices might drop, experts predict the opposite. By waiting, you may end up paying more for the same property down the road.
- Higher interest rates: Mortgage rates fluctuate, and there’s no guarantee they’ll stay at today’s levels. If rates rise while you wait, you could end up paying more over the life of your loan, even if home prices stay steady.
The Bottom Line
Buying a home now could mean stepping into a wealth-building opportunity. Even with moderate price appreciation, you stand to gain significantly from homeownership over the next few years. If you’re financially ready to buy, there’s no time like the present to start growing your equity.
Let’s connect and talk about how today’s market can help you secure your future. Don’t let the fear of timing the market perfectly hold you back. The opportunity to build equity starts the moment you invest in a home.