Why Buying a Home Now Could Pay Off in the Long Run

With the housing market in constant flux, you might be wondering whether now is the right time to buy a home or if it's better to wait. The answer, of course, depends on your personal circumstances. However, here’s an important factor to keep in mind as you weigh your decision: the longer you own your home, the more equity you’re likely to build.

As soon as you purchase a home, you begin building equity. And even in a market where home prices rise at a slower rate, that equity can grow more quickly than you might expect.

Each quarter, Fannie Mae releases the Home Price Expectations Survey (HPES), which gathers insights from over a hundred economists, real estate professionals, and financial experts. The latest survey indicates that home prices are expected to rise consistently on a national level through at least 2028 (see the graph below):

 While the rate of increase varies depending on local markets, this overall trend suggests that home prices will continue to climb in the years ahead. While rising prices may seem daunting when you’re looking to buy, once you’re a homeowner, those increases can benefit you by significantly boosting your home’s equity.

 

Let’s look at a specific example: if you purchase a $450,000 home today, experts from the HPES project that you could see over $90,000 in equity growth within five years. That’s a substantial return on your investment and a compelling reason to consider purchasing sooner rather than later.

 

you’re in a financial position to buy now and building wealth through homeownership is important to you, the current market offers an opportunity you might want to seize. With mortgage rates having come down, it could be an ideal time to make your move.

To navigate the decision-making process and get a clearer picture of the housing market in your area, it’s a good idea to consult with a local real estate professional. They can provide you with insight into current market conditions and help you weigh the potential benefits of buying now.

As The Mortgage Reports puts it:

“In a market this complex, staying informed about the latest housing trends is critical. Whether you're planning to buy or sell this year, working with a knowledgeable professional can make all the difference.”

Bottom Line

Deciding whether to buy now or wait is a deeply personal choice. A real estate expert won’t push you into a decision but can offer valuable insights into factors you may not have considered—like the potential equity you stand to gain. If you’d like guidance on your options in today’s market, let’s connect to discuss what makes sense for your situation.