Why Waiting Could Cost You More Money

Everyone wants to buy at the perfect time. I get it. Here’s the reality: trying to time the housing market is almost impossible.

One advantage of working with a real estate agent is that we don’t just watch the market – we watch people. Over the years, we have the same conversations with hundreds of buyers in every type of market.

In a seller’s market, people tell me they’re waiting for prices to come down. Then the market shifts, buyers have more negotiating power, and suddenly they’re waiting for interest rates to come down. When rates drop, many will wait again because they’re worried prices are too high or they’re hoping for an even better deal.

The reasons change, but the waiting stays the same.

Yes, even in 2017, I had buyers tell me they were waiting on prices to come down. Now prices have doubled since then. Sad thing is that it is predictable with data we from the last 60 years. Home prices have doubled every 10 years since 1965. The only 10-year span where it didn’t double is 2005-2015. That was with a historic recession in the middle and prices still went up almost a net of $60,000 per home from 2005-2015.

The “Perfect” Moment Rarely Feels Perfect

That’s because there rarely feels like a “perfect” time to buy. If you keep waiting for every condition to be perfect, you’ll probably find another reason to wait when that moment arrives.

Instead of trying to predict the perfect market, focus on buying when it makes sense for your life and your finances.

The Hidden Cost of Waiting for Lower Rates

Right now, many buyers are waiting for lower interest rates. While they may come. When they do, more buyers typically enter the market, competition increases, and home prices often rise.

So, while you might save on the interest rate, you could end up paying much more for the house itself. The good news is you can refinance your mortgage if rates fall. You can’t refinance the purchase price.

Think Long-Term

That’s why the secret to real estate is to think long-term. You should buy the right home when you’re financially ready, lock in today’s price, build equity, and refinance later if the opportunity presents itself.

The goal isn’t to perfectly time the market. The goal is to get on the train as soon as possible before it leaves you at the train station.

Have a plan, look into new construction or find an up and coming market. New Construction is offering huge rate buy downs, closing cost assistance and willing to negotiate. Don’t do new construction without an agent. I will have another blog next week about why bring an agent to a new home purchase. I will explain from my near decade of new build experience on why that is a good idea. Subscribe to the blog so you don’t miss out on anything I post.

Bottom line:

The best time to buy is when you’re ready and not when the headlines say it’s perfect. Headlines don’t make money on perfect, they make money on fear and uncertainty.

If you’re thinking about making a move, let’s talk. We’ll look at your numbers, your goals, and what makes sense for you– not for the market.