Focus on Time in the Market, Not Timing the Market

Should You Buy a Home Now or Wait? Here's What You Need to Know

As a real estate agent, I often get asked, "Should I buy a home now or wait?" It's a big question that hinges on many personal factors. However, one thing you might not have considered is the benefit of focusing on time in the market rather than trying to time the market.

The Downside of Trying to Time the Market

Trying to time the market can be a risky strategy. Here's why: Market conditions can change unexpectedly. For instance, many projections earlier this year suggested mortgage rates would decrease. While experts still anticipate a decline, various economic factors have delayed that timeline. This has left many potential homebuyers who were waiting on the sidelines still waiting. As U.S. News explains:

“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 highlights why trying to time the market may not be the best strategy if you’re ready and able to buy now.

The Proof Is in the Pudding: How Homeowners Benefit from Rising Home Prices

Delaying your home purchase also means missing out on potential equity gains. Each quarter, Fannie Mae releases the Home Price Expectations Survey, which gathers forecasts from over a hundred economists, real estate experts, and market strategists. According to the latest survey, home prices are expected to continue rising through at least 2028.

To put this into perspective, let's consider a $400,000 home purchased at the beginning of this year. Based on expert forecasts, this home could appreciate in value by more than $83,000 over the next five years. That's a significant amount of potential wealth you could miss out on by waiting.

The Advice You Need If You’re Ready and Able to Buy Now

Right now, you might be concerned about current mortgage rates and how they affect your monthly payment. However, it's also important to consider that home prices are projected to keep climbing, albeit at a more moderate pace. While rising prices may seem daunting now, owning a home means you'll benefit from this appreciation over time. This is where the concept of time in the market comes into play.

Sure, you could try to time the market, but you'd be missing out on potential equity gains in the meantime. If you're ready and able to buy now, you need to ask yourself: is it really worth waiting?

Bottom Line

If you're debating whether to buy now or wait, remember the importance of time in the market rather than trying to time the market perfectly. If you're ready to start building equity and setting yourself up for future financial growth, let's connect and get the ball rolling on your home purchase. The sooner you get in, the sooner you can start reaping the benefits.

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