Should you buy a home now or wait? It's a question on many people's minds. While the answer depends on your unique situation, here's one important factor to consider as you make your decision: the sooner you buy, the sooner you start building equity—and that can add up faster than you think, even with moderate home price increases.
Each quarter, Fannie Mae releases the Home Price Expectations Survey (HPES), which gathers input from over 100 economists, real estate experts, and market strategists. Their latest forecast shows home prices will continue rising nationally through at least 2028 (see graph below).
While prices will vary depending on location, the general trend is upward. The rate of increase may change year to year, but home prices are expected to rise steadily.
Though rising prices might not seem like good news if you're buying, they’ll work in your favor once you own a home. The following graph shows how much equity you could build by purchasing now, using projections from HPES and the value of a typical home:
If you buy a $450,000 home today, you could gain over $90,000 in wealth from home equity over the next five years, based on these projections. That’s a significant increase in your net worth.
So, if you’re ready and able to buy, and growing your wealth matters to you, now could be a great time to take advantage of this opportunity, especially with mortgage rates dropping.
For more insight into your options, it’s important to consult a real estate professional. They can provide a clear picture of what home prices are doing in your local market and how that impacts your future equity. As The Mortgage Reports notes:
“Given the intricacies of the current market, it’s more important than ever to stay informed and up to date about housing market conditions. Whether you’re 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 choice to buy now or wait is a personal one, but having an expert on your side can provide valuable insights. They’ll help you weigh factors you may not have considered, like the equity you could build by purchasing sooner rather than later.
If you're ready to explore your options, get in touch with a member of our team today!