Consider the Cost of Waiting to Purchase Your Next Home

In the world of real estate, timing is everything. Should you buy now or buy later?

As a trusted guides to homebuyers, Realtors understand the significance of making informed decisions in a market that's as unpredictable as it is promising. Today, we're here to shed light on a crucial aspect often overlooked: the cost of waiting to buy.

It's no secret that home values tend to climb steadily over time. While market fluctuations may occur, the overall trajectory points upward.

However, many homebuyers focus solely on mortgage rates. They wait for rates to decrease, hoping for a better deal. But here's the catch: waiting might not always work in their favor.

Consider this scenario: you hold back your home purchase, waiting for a drop in mortgage rates. Meanwhile, home values continue to rise! When rates change and you're finally ready to buy, you'll find yourself paying even more for the same property you could have purchased earlier. Let's calculate the equity for a $400,000 home you could buy today versus waiting 2 years to purchase. 2 years later we're estimating that same home will cost $441,000!

• We'll assume that the home appreciates by 5% per year, and the interest rate does not change.
• The new home price after 2 years of appreciation is $441,000
• The current borrower would have OVER $88,000 in equity in 2026 (after a Refi) versus $44,100 in equity by waiting.

While buying a house right now might feel overwhelming, the cost of waiting requires some math and planning. Thanks to PalmAgent for sharing this wonderful and straight forward graphic! If now's the time to buy, contact metoday.