When deciding whether to buy a home now or wait, various personal factors come into play. However, there's one aspect that might not have crossed your mind: market trends.

If you can purchase at today's rates and prices, you might want to consider concentrating on how long you stay in the market, instead of trying to predict the best time to enter or exit.

The Downside of Trying To Time the Market 

Timing the market isn't a reliable strategy since circumstances are subject to change. For instance, this year, there were forecasts indicating a decrease in mortgage rates. Despite the general consensus among professionals that this change is forthcoming, fluctuations in different market and economic conditions have caused delays in its realization. This delay

“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.”
— U.S. News

Timing the market might not necessarily be advantageous if you are prepared and capable of purchasing promptly.

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

Delaying your plans also means forfeiting the equity you could accumulate if you proceeded with your purchase today. The potential equity gains in question might be more significant than you realize.

Quarterly, Fannie Mae publishes the Home Price Expectations Survey, gathering insights from a diverse group of professionals on the future of home prices. The most recent report indicates a forecast for continual growth in home prices until 2028, as depicted in the accompanying graph.

To provide some perspective on these numbers, let's examine a breakdown of your potential gains post-purchase. The graph illustrates the projected appreciation of a standard home over the next several years based on HPES forecasts.

If you purchased a home for $400,000 earlier this year, HPES forecasts suggest you might see a household wealth increase of over $83,000 in the next five years. That's quite a significant sum.

This data illustrates the importance of how the duration spent in the market can significantly impact outcomes.

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

When considering your monthly payment, it's crucial to not just concentrate on mortgage rates but also consider how home prices play into the equation.

Prices are projected to keep increasing, albeit at a slower rate. While a modest price hike may not be exciting at the moment, it could serve as a significant advantage once you become a homeowner. This is known as the time in the market concept.

Consider this: while you could attempt to time the market, ponder the equity you may forego in the interim. If you are prepared and in a position to make a purchase at this moment, you must contemplate whether delaying is truly advantageous.

Instead of trying to time the market, it's more beneficial to focus on spending time in the market.

As per U.S. News Real Estate, the following quote is now interpreted:

“There’s never a one-size-fits-all answer to whether now is the right time to buy a home. . . . There’s also no way to predict precisely what the market will do in the near future . . . Perfectly timing the market shouldn’t be the goal. This decision should be determined by your personal needs, financial means and the time you have to find the right home.”
— U.S. News Real Estate

Bottom Line

When deciding to buy a home, focus on time in the market rather than timing the market. Let's connect to kickstart the process for potential profit gains.