Should You Buy Now or Wait? 3 Key Questions to Consider

Should You Buy Now or Wait? 3 Key Questions to Consider

If you're thinking about buying a home, it's natural to feel uncertain about timing. Is now the right time, or should you wait for things like mortgage rates to come down? This infographic breaks down three essential questions that can help you make an informed decision. Let's dive into these factors and what they mean for you as a potential homebuyer.

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

You might be tempted to wait for mortgage rates to decrease even further. However, this strategy could backfire. Why? Because when rates drop, more buyers flood the market, increasing competition and pushing home prices up. According to Greg McBride, Chief Financial Analyst at Bankrate, "A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house."

Essentially, waiting could put you in a more competitive and expensive market. By acting now, you might secure a home with less competition, giving you the edge.

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

Some buyers think waiting until after a presidential election might be a smart move. However, history shows that this could actually cost you more in the long run. After 7 of the last 8 U.S. presidential elections, home prices went up. For instance, following the 2020 election, the median sales price of existing single-family homes rose from $296,700 to $350,400 in 2021.

If you're waiting for post-election stability, you might end up paying significantly more for your home. Moving sooner could save you a considerable amount of money.

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

Buying a home is a long-term investment, and building equity should be a key factor in your decision-making. If you plan to stay in your home for several years, purchasing now allows you to start building equity sooner. In fact, CoreLogic notes that the average homeowner gained about $25,000 in equity over the past year alone.

The earlier you buy, the faster you begin to build wealth through homeownership. If you're looking to put down roots, now might be the best time to take that step.

Final Thoughts: Should You Buy Now or Wait?

When deciding whether to buy a home now or wait, it's crucial to consider the potential competition, the economic impact of elections, and how long you plan to live in the property. With less competition in the current market and the historical trend of rising prices post-election, waiting could cost you more. Plus, by acting now, you start building equity and long-term wealth sooner.