To Wait or Not to Wait: Should You Buy a Home Now or Later?
With mortgage rates expected to drop soon and a Presidential election just around the corner, you might be wondering, “Should I buy a home now or wait it out?” It’s a question many homebuyers are asking right now, and while waiting for the “perfect” time might sound smart, it’s not always the best move. Let’s dive into why jumping into the market now could be your best bet—and how trying to time the market could leave you on the sidelines.
Why Waiting Might Not Be Worth It
Here’s the latest: mortgage rates are expected to come down soon, which has a lot of people thinking about holding off. But waiting for those lower rates could actually cost you in the long run. According to Market Watch, financial planners say that trying to time the market perfectly isn’t realistic—and that applies to big purchases like buying a home (Han, Market Watch). Rates are just one piece of the puzzle; home prices are influenced by many factors, including buyer demand. And when rates drop, more buyers will jump back in, which means more competition and potentially higher home prices.
My recommendation if you jump in now (but please also consult with a mortgage professional): Get under contract on your dream home, don’t lock in your rate until they come down, close escrow and enjoy. And if the rates come down even more after you purchase, refinance. Sit back and watch everybody else fight it out next spring… you’ll be happy that you did!
Take Advantage of the Slowdown Now
The period leading up to a Presidential election often sees a slight dip in the market. That means less competition for you, the buyer. Right now, you have a golden opportunity to take advantage of a slower market where you won’t have to fight as hard against other buyers. Plus, with fewer offers to compete with, you might have more negotiating power to get a better deal. Better price, better terms, buyers with the chance to be in the driver’s seat for once!
What’s Coming After the Election?
It’s pretty consistent: the spring following a Presidential election is typically one of the busiest and most competitive times in the housing market of that elected President’s 4-year term, no matter which party takes office. If rates drop as expected, a flood of buyers will likely rush in, making it tough to find a good deal. And when buyer demand goes up, so do home prices. If you wait, you could find yourself in a crowded market with rising prices—and the stress of bidding wars.
You Can Always Refinance Later
One of the biggest reasons people hesitate to buy now is the fear of getting stuck with today’s higher rates. But here’s a tip: you’re not locked in forever! You can always refinance your mortgage when rates drop, giving you the flexibility to secure a lower rate down the line (Han, Market Watch). So, why wait when you can start building equity now and adjust your rate later?
Here’s the Bottom Line: Don’t Let Fear Hold You Back
Financial planner, Rebell, puts it, “You should always be aware of what’s going on in the macroeconomy, but don’t be so absorbed that you can’t move forward with this life decision that makes sense to you at that time” (Han, Market Watch). The housing market will always have its ups and downs, but what matters most is finding the right home that fits your needs now. So if you’re ready, there’s no reason to wait!
If you want to chat more about your options or need help navigating the current market, give us a call. We’re here to guide you every step of the way and make sure you get the best deal possible, no matter what the market is doing.
