I recently had discouraged buyers tell me they are going to stop looking for a new home. They have been casually looking for a few years. We even wrote an offer on a lovely home, but the next morning they got cold feet and pulled their offer. Housing prices have continued to rise and mortgage rates have increased since then. They feel they “missed their window” of opportunity.
If you’ve been sitting on the fence about buying a home, you’re not alone. Many would-be buyers hesitate—hoping for lower prices, better interest rates, or simply trying to time the market. But the truth is, waiting could cost you more in the long run.
Here are key reasons why now may be the right time to make your move:
1. Home Prices Are Still Rising
While the market may shift slightly in the short term, the overall trend in real estate value is upward. Delaying your purchase could mean paying more for the same property just months down the road. If you hold off for a year or two, that same home will most likely appreciate ten or twenty percent, or even more. In most cases, the “cheapest” you are going to get a home is right now. Home values are expected to continue climbing for the foreseeable future.
2. Interest Rates Are Unpredictable
Mortgage rates have been volatile. Even a small increase can significantly affect your monthly payment and how much home you can afford. Locking in a rate today protects you from future hikes. No one knows exactly where interest rates are going, but we will most likely never see the unprecedented low interest rates in the three percent range again. Over the years, a seven percent interest rate has been the average, with fluctuations into the double digits. Buying a home now will lock you into an average rate.
3. Start Building Equity Sooner
Every mortgage payment helps you build equity—the difference between what your home is worth and how much you still owe. Over the years, your equity grows and this is a valuable financial asset that contributes to your net worth. The sooner you buy, the sooner you start the equity clock. Not only are you paying down your mortgage, but your home value is rising. This creates more and more equity the longer you own your home. If you are renting, this is especially important to consider. Stop paying someone else’s mortgage and start investing in your own future.
4. Rent Isn’t Getting Cheaper
Rent prices are climbing in many areas, often faster than home values. Monthly rent prices, when compared to monthly mortgage amounts, will often “buy” you less of a home than if you bought the home. You will often pay more for less of a house when renting when compared to buying. Owning a home can provide stability, predictability, and protection against rising living costs. Paying a mortgage is also a forced savings account, which builds equity and wealth over time. The net worth of a homeowner is forty times that of a renter!
5. Take Advantage of Tax Benefits
Homeownership comes with potential tax advantages, including deductions for mortgage interest and property taxes. If you have a home office, have installed energy efficient appliances, etc., you may qualify for additional tax deductions or credits. Check with your accountant on any possible deductions you may be able to take for your situation. These savings can add up, especially in the early years of your loan.
6. Real Estate Is a Long-Term Investment
Homeownership has historically been one of the most reliable ways to build wealth. The longer you own your home, the more likely you are to benefit from appreciation and equity growth. For example, the median sale price of a home in 2000 was $165,300. Now 25 years later, the median sale price of a home is $416,900. The median homeowner’s net worth in the United States is approximately $400,000, while the median renter’s net worth is significantly lower, at around $10,400. One of the easiest ways to build personal net worth is by owning your own home.
7. Inventory May Shrink
The real estate market is constantly changing. The home you love today may not be available tomorrow—and competition could increase as more buyers enter the market later in the year, especially if interest rates decline. Housing inventory has been low for many years. In our local area, housing inventory is less than a two-month supply. For a balanced market, we need a six-month supply. There is a lot of home buyer demand and would-be sellers are holding onto their homes. It takes time to find the right home and starting sooner versus later is best.
8. Secure the Lifestyle You Want
Owning your home means having control over your own space, design, and long-term plans. No more lease renewals, surprise rent increases, or restrictions on pets and renovations. Over time you can renovate your home to your liking, add a garden or other landscaping, and truly make it your home. Having ownership of the place you live in provides security and autonomy. You can settle in for years to come and create a warm space for yourself and your family.
9. Put Your Money to Work for You
Every rent payment is money you’ll never get back. It may allow you to live in a home, but there is nothing to show for it in the end. You are paying someone else’s mortgage while burning through your hard-earned money. Buying a home allows you to invest in something that has the potential to grow in value over time. Your money is working for you with each mortgage payment. You still have a place to live, but instead of losing all of your rental money each month, you are putting your money towards your own home.
10. You Can Always Refinance
Worried about mortgage interest rates? If they drop in the future, you can refinance your loan to get a better deal. Many lenders allow you to refinance for minimal costs for a certain time period. Even if rates are higher than you like right now, as soon as you buy a home, you are starting to build equity and your home value is increasing. If mortgage interest rates rise in the future, you’ll be glad you locked in when you did! Mortgage rates will fluctuate, but home values will continue to increase. Don’t wait for the perfect interest rate, but instead focus on equity and home value.
The bottom line, there’s rarely a “perfect” time to buy a home. Let’s go back to my discouraged buyers. They realize that a few years ago, or last year, or even six months ago, they should have bought a home and not hesitated. Now, I’ve worked with enough buyers/sellers to know they can still make it work. And next year, when home prices are higher, they would’ve been glad that they made the move.
Waiting often means higher costs and missed opportunities. If you’re financially ready, the best time to buy a home is often now. Take control of your future, invest in yourself, and stop letting hesitation hold you back.
If you have any questions about buying or selling a home, please contact me for a complimentary consultation!
By Launch Kits