The question of whether to buy a home now or wait is on many people’s minds these days. The truth is, the right choice for you depends on several factors unique to your situation. However, one important point to consider is the equity you can start building as soon as you purchase a home.
Home Equity Adds Up Faster Than You Think
Once you buy a home, you immediately begin gaining equity. Even with moderate price appreciation, this equity can accumulate faster than many expect. Every quarter, Fannie Mae publishes its Home Price Expectations Survey, which gathers insights from over 100 economists, real estate experts, and market strategists. According to their latest report, home prices are projected to continue rising at a steady pace nationally through at least 2028.
While the rate of price increases will vary by region, the takeaway is clear: home prices are expected to rise every year, even if the pace slows slightly. For homeowners, this means ongoing growth in your home’s value can become a valuable asset in the years to come.
Building Wealth Through Homeownership
For example, if you bought a $450,000 home at the beginning of this year, based on expert forecasts, you could potentially gain more than $90,000 in equity over the next five years. That’s a significant return and a great way to build household wealth.
So, if you’re financially ready and looking to grow your wealth, this could be an excellent opportunity. Plus, with mortgage rates having recently fallen, it might be time to consider taking the next step.
Talk to a Professional for Guidance
Every market is different, and having a professional on your side can help you navigate these complexities. As The Mortgage Reports points out:
“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.”
Bottom Line
Whether to buy now or wait is a personal decision. But consulting with an expert can help you weigh your options more effectively, especially when considering potential equity gains. If you’d like assistance evaluating your choices or understanding how the current market impacts your situation, feel free to reach out to discuss your next steps.
Let’s connect and explore your best path forward!