Should you buy a home now or wait? It’s a common question, and while the right choice depends on your unique circumstances, here’s one key factor to keep in mind as you decide.

The moment you buy, you start building equity. And even with moderate price appreciation, that equity can grow faster than you’d think.

Each quarter, Fannie Mae publishes the Home Price Expectations Survey, which gathers insights from over 100 economists, real estate experts, and market strategists. The latest report projects that home prices will continue to rise nationally through at least 2028 (see graph below):

While home prices will differ from one area to another, the overall trend shows they’re expected to continue rising nationally. The rate of increase may vary year-to-year, but the key point is that prices are projected to go up every year—albeit at a more moderate pace.

Rising prices might not seem appealing at first, but once you own a home, that growth will be a significant benefit. The graph below illustrates how much equity you could build based on a typical home’s value and the latest projections from the Home Price Expectations Survey (HPES):

If you had purchased a $450,000 home at the start of this year, expert forecasts from the HPES suggest you could build over $90,000 in wealth through equity over the next five years. That’s a significant gain!

So, if you’re financially ready and growing your wealth is a priority, this could be a great opportunity. With mortgage rates now trending lower, it might be the right time to make your move.

To better understand your options and local market trends, it’s best to consult with a professional. They can provide insights on home prices in your area and what that means for your potential future equity. As The Mortgage Reports puts it:

“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

Deciding whether to buy now or wait is a personal choice, but having an expert’s perspective is invaluable. They won’t pressure you but can help you consider factors like potential equity growth.

If you want help evaluating your options and understanding how current market trends may impact your decision, connect with a local real estate agent.