Why Purchasing Now Could Pay Off in the Future

Should you buy a home now or wait? It’s a common question many people are asking these days. While the right choice depends on your unique situation, there’s something important to keep in mind as you weigh your options.

Once you purchase a home, you immediately begin building equity. You might be surprised at how quickly that equity can grow, even with modest increases in home prices.

Fannie Mae publishes the Home Price Expectations Survey every quarter, gathering insights from over 100 economists, real estate professionals, and market strategists about their predictions for home prices over the next five years. The latest survey shows that home prices are expected to rise nationally through at least 2028 (see the graph below):

While home prices will vary from one local market to another, the key takeaway is that they’re expected to keep rising nationally. The rate of increase may fluctuate year-to-year, but prices are projected to grow consistently—albeit at a moderate pace.

Rising home prices might not sound ideal at the moment, but once you own a home, that growth becomes a significant advantage for you. The graph below illustrates how much equity you could potentially build, based on a typical home’s value and the HPES projections:

If you purchased a $450,000 home at the start of this year, using that initial value and the expert projections from the HPES, you could potentially build more than $90,000 in wealth over the next five years. That’s a substantial increase.

So, if you’re financially ready to buy and growing your wealth is a priority, this could be a great opportunity. Plus, with mortgage rates declining, now might be the perfect time to consider taking action.

To explore your options and what makes sense for your situation, it’s a good idea to consult with a professional. They can provide insights into local home prices and help you understand what that means for your next move—and your future equity. As noted by The Mortgage Reports:

“Given the complexities of today’s market, staying informed and up to date on housing conditions is more crucial than ever. Whether you’re planning to buy or sell in the remaining months of 2024, having a professional guide you through the process can make all the difference.”

Bottom Line

Deciding whether to buy now or wait is a personal choice, but having expert advice can be incredibly helpful. A real estate professional won’t pressure you, but they can provide valuable insights—like the equity you might gain—that you may not have considered. If you’re looking for guidance on your options and how the current market factors into your decision, reach out to a local real estate agent.