Should I Buy a Home Now or Wait?

The decision to buy a home is one of the most significant financial moves you'll make. In today's housing market, it's understandable if you're feeling uncertain about the timing. Should you take the plunge now, or wait for potentially better conditions down the line? Let’s break it down by looking at three key questions that can help guide your decision.

1. Should I Hold Out for Even Lower Mortgage Rates?

With mortgage rates fluctuating, it's tempting to wait for them to drop further. But keep in mind, if rates do fall, the demand for homes will likely surge. That means more competition, making it harder to find the home you want at the price you’re hoping for. As Greg McBride, Chief Financial Analyst at Bankrate, explains:

"A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house."

If your primary goal is locking in a low rate, waiting might seem wise, but it could increase the chances of competing with more buyers and driving up home prices. Weighing the benefits of waiting against potential challenges in the market is critical.

2. Is It Better to Wait Until After the Election?

A common question people ask during election years is whether waiting until after the election will lead to better deals on homes. Historical data suggests that home prices tend to rise following presidential elections. In fact, home prices increased after 7 out of the last 8 elections.

For example:

• After the 2016 election, the median home price jumped from $235,500 to $248,800 by the following year.
• Similarly, after the 2020 election, the median home price rose from $296,700 to $350,400.

This trend indicates that waiting for election outcomes might not result in lower home prices. Instead, acting now could help you avoid paying higher prices later on.

3. Do I Plan to Live There for a While?

Real estate is a long-term investment, and if you plan on putting down roots, buying now could be a smart choice. By purchasing a home, you begin building equity—an important factor in growing your financial stability. According to CoreLogic, the average homeowner gained about $25,000 in equity in just the past year.

If you're planning to stay in your home for several years, the benefits of homeownership, like increasing equity and long-term appreciation, may outweigh short-term market fluctuations.

So, Should You Buy Now or Wait?

There’s no one-size-fits-all answer, but considering factors like mortgage rates, election year trends, and your long-term living plans can help you make an informed decision. Remember, if you plan to stay in your home for a while, you could start building equity and setting yourself up for long-term financial success.

If you’re still unsure, let’s talk through your options together to help you make the best decision for your situation. Whether you decide to buy now or wait, we’re here to help you every step of the way.