Why Buying Now May Be Worth It in the Long Run

Are you trying to decide whether to buy a home now or wait? It’s a common question in today’s real estate market, but one factor you should consider is how quickly you can start building equity once you become a homeowner. Even with moderate home price appreciation, that equity can add up faster than you think.

Building Equity: A Key Advantage of Homeownership

When you buy a home, you begin to build equity, which is the difference between what you owe on your mortgage and the current market value of your home. The great news is that home prices are expected to keep rising over the next five years. According to the latest Home Price Expectations Survey from Fannie Mae, experts predict that home prices will continue to increase through at least 2028.

While the size of the increase may vary depending on your location, the overall trend is clear: home prices will keep going up. This means that as a homeowner, you stand to gain significant equity over time.

How Much Equity Could You Build?

To give you an idea of the potential financial benefits, let’s look at the projections. If you bought a home valued at $450,000 today, based on the expert forecasts from the Home Price Expectations Survey, you could potentially gain over $90,000 in equity within five years. That’s a substantial increase in your household wealth, all from owning a home and watching its value rise.

Why Now Might Be the Right Time

With mortgage rates having recently declined, now could be a great time to consider buying. Lower rates improve your affordability and may make homeownership more attractive than renting. The current market conditions, combined with the potential for future equity growth, present a unique opportunity for those ready to buy a home.

Consult with a Real Estate Professional

Before making your decision, it’s essential to get expert advice. A knowledgeable real estate agent can provide insights into home prices in your area and help you understand how equity growth may impact your financial future. As The Mortgage Reports emphasizes:

“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

The decision to buy now or wait is highly personal, but building equity sooner rather than later can be a compelling reason to move forward. If you're interested in learning more about how homeownership could benefit you, let's connect. I’m here to help you weigh your options and understand how the current market conditions may work in your favor.