Time in the Market Beats Timing the Market

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Trying to decide whether it makes more sense to buy a home now or wait? There’s a lot to consider, from what’s happening in the market to your changing needs. But generally speaking, aiming to time the market isn’t a good strategy – there are too many factors at play for that to even be possible.

That’s why experts usually say time in the market is better than timing the market.

In other words, if you want to buy a home and you’re able to make the numbers work, doing it sooner rather than later is usually worth it. Bankrate explains why:

“No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately.”

Here’s some data to break this down so you can really see the benefit of buying now versus later – if you’re able to. Each quarter, Fannie Mae releases the Home Price Expectations Survey. It asks over one hundred economists, real estate experts, and investment and market strategists what they forecast for home prices over the next five years. In the latest release, experts are projecting home prices will continue to rise through at least 2029 – just at a slower, more normal pace than they did over the past few years (see the graph below):

a graph of a number of green rectanglesBut what does that really mean for you? To give these numbers context, the graph below uses a typical home value to show how it could appreciate over the next few years using those HPES projections (see graph below). This is what you could start to earn in equity if you buy a home in early 2025.

a graph of growth of a houseIn this example, let’s say you go ahead and buy a $400,000 home this January. Based on the expert forecasts from the HPES, you could gain more than $83,000 in household wealth over the next five years. That’s not a small number. If you keep on renting, you’re losing out on this equity gain.

And while today’s market has its fair share of challenges, this is why buying is going to be worth it in the long run. If you want to buy a home, don’t give up. There are creative ways we can make your purchase possible. From looking at more affordable areas, to considering condos or townhomes, or even checking out down payment assistance programs, there are options to help you make it happen.

So sure, you could wait. But if you’re just waiting it out to perfectly time the market, this is what you’re missing out on. And that decision is up to you.

Bottom Line

If you’re torn between buying now or waiting, don’t forget that it’s time in the market, not timing the market that truly matters. Let’s connect if you want to talk about what you need to do to get the process started today.

 

Ready to start your homebuying journey?   With our VIP Buyer Experience, you’ll gain exclusive access to personalized services, expert guidance, and top-tier resources to make your purchase seamless and stress-free. Let us help you find the perfect home while saving you time and money. Contact us today to learn more and take the first step toward your dream home!

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About the Author
Adam Stivaletta
ABOUT: When it comes to real estate Adam brings the full package to the table. Known for his extensive experience in the field and fierce work ethic, the biggest characteristic that sets Adam apart and the reason people choose him to sell or buy their house is his ability to advise, guide, and deliver! He will strive to understand your needs and fulfill them with unmatched loyalty and execution. Adam has built a reputation as one of the most highly effective and versatile agents in the field. He is client driven and results focused 100% of the way.

CREDIBILITY: Adam sells on average over 30 homes a year serving both buyers and sellers and in recent times has been recognized as one of the top 1.5% of agents in the United States by Real Trends, has ranked #9 in New England for listings sold at Keller Williams along with various other categories, has been the recipient of National Awards every year since his rookie year, and has been featured in USA Today.