You've likely come across the phrase: "The best time to buy a home was yesterday, but the next best time is now."

Homeownership is really more of a long-term investment, and historically, home prices tend to increase over time. So, if you're waiting for prices to drop or interest rates to get better, keep in mind that timing the market usually doesn't pan out as expected.

Most buyers often overlook this: the longer you wait, the more expensive buying can become. It’s important for you to grasp why that is.

Forecasts Say Prices Will Keep Climbing

Every quarter, more than 100 housing market experts provide their insights for the Home Price Expectations Survey conducted by Fannie Mae, and they all share a common outlook: home prices across the country are projected to keep increasing at least until 2029.

The rapid price hikes are over, but experts expect a stable and sustainable growth of 3-4% annually moving forward. While this may fluctuate in different local markets from year to year, the positive takeaway is that this rate is much more typical—offering a reassuring sign for both the housing market and prospective buyers.

Even in markets with slower price growth or small short-term declines, the benefits of homeownership pay off in the long run.

Here are a few key points to remember:

• Next year, home prices are expected to rise compared to this year. If you wait too long, you’ll likely pay more for your home.

• Holding out for that perfect mortgage rate or a price drop might not be the best strategy. Even if rates go down a bit, the expected increase in home prices could end up costing you more in the long run.

• Buying now allows you to start building equity right away. If you think long-term with homeownership, that equity can really pay off for you over time.

What You’ll Miss Out On

Let’s break this down with some real numbers, as it starts to make sense pretty fast. According to expert predictions, if you purchase a typical home for $400,000 in 2025, it could appreciate by almost $80,000 by 2030 (see graph below).

That’s a great way to enhance your financial future, which is why your friends and family who have already purchased a home are happy with their decision. The amount of time you spend in the market really makes a difference.

The real question isn't whether you should wait to buy, but whether you can afford to buy now. If you can make a bit of a financial stretch or consider a smaller home to get started, it could really pay off in the long run.

Today's housing market does have its hurdles, but there are strategies to navigate it. You can look into various neighborhoods, check with your lender for alternative financing options, or consider down payment assistance programs.

The important thing is to take action when it feels right for you, instead of holding out for a perfect situation that might never happen.

Bottom Line

Being in the market for a longer period is often more important than trying to perfectly time your entry or exit.

If you're trying to decide whether to buy now or hold off, keep this in mind: real estate tends to favor those who jump into the market rather than those who wait for the perfect moment.

Interested in checking out the local price trends? Whether you’re thinking about buying right now or just exploring your options, having a solid plan can really help you succeed in the long run.