LK Marketing and Real Estate

Buying a home is one of the most significant financial decisions you’ll ever make. With fluctuating mortgage rates and market uncertainties, it’s no wonder many are left asking: Should I buy now or wait? To help you navigate this tough decision, here are three key questions you should ask yourself before making your move.

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

With recent rate cuts and economic shifts, you may be tempted to wait for even lower mortgage rates. While it’s true that lower rates could save you money in the long run, waiting could also come with consequences. A Chief Financial Analyst at Bankrate notes that holding out might mean missing out on favorable prices in today’s housing market.

As rates fall, demand often increases, which drives up home prices. In short, the cost of waiting for a better deal might end up being higher than you expect. As the saying goes, time in the market is better than timing the market.

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

Many homebuyers wonder if it’s wise to wait until after a presidential election to make their purchase. Historically, home prices have increased the year following the election. In fact, prices have risen after 7 of the last 8 presidential elections, often making the cost of waiting higher than expected.

For example, after the 2020 election, the median home price jumped from $309,200 to $350,400 in just one year. If history repeats itself, buying sooner rather than later could save you thousands in the long term.

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

Homeownership is often one of the best long-term investments, especially if you plan to stay in the home for several years. Over time, homeowners typically see a significant increase in equity. For instance, the average homeowner gained $25,000 in equity over the past year alone, according to industry insights.

If you’re considering buying a home, this potential for long-term growth should weigh heavily in your decision-making process. If you’re ready to settle down for at least a few years, buying now might be a great way to build wealth.

So, Should You Buy Now or Wait?

The decision to buy now or wait is personal and depends on your current financial situation, the market trends, and your long-term goals. If you’re unsure, consult with a real estate agent or financial advisor to discuss your options. But remember, waiting could mean facing higher home prices or increased competition in the future.